BUSINESS AND TECHNOLOGY Flashcards
What is an organisation?
organisations aresocial arrangements to achieve collective goals through controlled performance
3 key aspects of organisation
- social arrangements
- collective goals
- controlled performance
examples of organisation
schools, companies, hospitals
purpose of forming business organisation
to operate beyond the capacity and capability of a single individual
what is meant by social arrangement
a group of more than one person
eg: charities, cooperatives
collective goal of a business organisation
to maximise the wealth of the owner
advantages of the business organisation
- more capital resources
- division of labours
- total output of a group
- reduced risks
features of business organisation (SOMA)
- stakeholders
- operating environment
- managed activities
- assets/capital
what are the attributes used to differentiate the business organisations
- size
- ownership
- funding
- activities
- organisational structure
- strategy
-culture
size
the capacity and resources of the organisation
ownership
the legal control over a business
different types of ownership
sole trader, partnership, companies etc
funding
the money used by the business to fulfill its financial requirement
means of funding examples
debt,equity
