1. The business organisation

Question 1

define a business organisation. what are the three key components - who’s definition was this?

Answer 1

Buchanan and Huczynski

organisations are SOCIAL ARRANGEMENTS for the CONTROLLED PERFORMANCE of COLLECTIVE GOALS

Question 2

why do we need organisations? (3)

Answer 2

• share skills and knowledge
• specialise
• pool resources

Question 3

what is a commercial organisation? what are the main types of commercial organisations? (5)

Answer 3

an organisation who’s main priority is to maximise the wealth of its owners.

• soletraders: not legally seperate from the business
• partnerships: mainly not legally seperate (- limited liability partnerships/LLPS)
• limited liability companies
  
  • private limited liability companies (ltd): shares private
  • public limited liability companies (plc): shares offered to the general public

Question 4

give examples of not for profit organisations.

Answer 4

schools, hospitals, charities, government departments etc.

Question 5

what is the main difference between a public and private sector organisation?

Answer 5

public sector concerned with providing government services and is controlled by gov whereas the private sector is ran by individuals.

Question 6

what is an NGO?

Answer 6

non-governmental organisation: not ran for profit but no direct link to government.

Question 7

what is a co-operative? how does it differ from a company

Answer 7

organisation that is owned and controlled by its members. each member has one vote on decisions, in a company, each shareholder gets one vote for each share that they own.

Question 8

what are the main differences between the various types of organisations? (6)

Answer 8

• ownership
• funding
• liability
• size
• objectives
• activities