Introduction
In the present business environment, organizations need adequate funds so as to operate effectively and efficiently. The financial strength of an organization enables them to have a competitive advantage over their competitors. Since most organizations main aim is profit maximization, all their activities are geared towards raising of funds. Organizations should therefore engage in activities that increase their income. There are several activities that organizations engage in with an aim of funds generation (About.com, 2011).
Though the organizations aim at profit maximization, they are always guided by their mission statement. In the process of deciding on which activities to involve in so as to raise money, the organization has to consider some factors. The processes should not affect the relation between the organization and general public (About.com, 2011).
An organization can raise funds through donations. An organization may attract donor funding depending on their activities and the mission statement. Organizations that mainly enjoy the donor funding are mostly the non-governmental organizations the highest of the beneficiaries being the non-profit organizations. These organizations attract donor funding by engaging in social services geared towards assisting the needy and the less fortunate (About.com, 2011).
An organization may also raise money through loans from the financial institutions. The organizations financial reputation greatly influences the amount a financial institution can grant them. Organizations that seem to generate more income are likely to receive recommendable assistance from such institutions.
The most common way of raising money for organizations has been through promotions. O...
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...efore important in the determination of objectives and their implementation. These are greatly influenced by the environment, development stage and the type of organization (Vijanbe, 2011).
References
About.com, (2011). How Corporations Raise Capital. Retrieved from:
http://economics.about.com/od/smallbigbusiness/a/corp_capital.htm
Vijanbe, (2011). Types Of Business Environment. Retrieved from:
http://vijanbe.blogpot.com/2011/02/types-of-business-environment.html
QuickMBA, (2010). Competitive Advantage. Retrieved from:
http://www.quickmba.com/strategy/competitive-advantage/
OECD, (2011). Competition. Retrieved from:
http://www.oecd.org/topic/0,3699,en_2649_37463_1_1_1_1_37463,00.html
Investopedia, (2011). Economics Basics: Monopolies, Oligopolies and Perfect Competition.
Retrieved from: http://www.investopedia.com/unversity/economics/economics6.asp
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Weinstein, S. (2002). The complete guide to fund-raising management (2nd ed.). New York: John Wiley & Sons.
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"Knowledge Base: How Do I Start a Nonprofit Organization?" GrantSpace. N.p., n.d. Web. 07 May 2014.
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