24th March 2011, 04:23 PM
Unitof1 Wrote:Yes meant to put in dinosaur
Gpstone- so if being a charity unit is exactly like being a non charity unit why be a charity unit?
I'm referring to the ability to get credit and operate with an overdraft or credit facility, under which circumstances it is exactly the same.
The attractions are the charitable aspect - if you have charitable aims it makes sense. If you want to be able to acquire greater tax allowances etc and are willing to fulfill charitable aims, it makes sense (although you obviously have to a have a not-for-profit system which includes reinvestment in the company and or charitable aims, a board of trustees and no shareholders or ownership issues).
I agree that it has the potential to skew the market and competition, but not to a particularly great extent if you consider that there is also an element of evolution to the marketplace with companies naturally growing and absorbing others or, unfortunately putting them out of business (its not nice, but its the same as any other competitive market environment). Its equally possible to grow to big and exceed your potential market share, leading to you undermining your own business and going bust if the market shrinks, which it has done and we've subsequently seen all of the big companies getting into difficulty. At the end of the day, commercial competition is what it is. You can disagree with the system (and often I do), but I find it hard to disagree with a group of people's right to operate in a pre-existing system. if you choose to do that then you are automatically subject to everything that comes with it.