Business Organisation Ch - 1 Flashcards
What is an organisation ? By (buchanan and Huczynski) ?
Organisations are social arrangements for the controlled performance of collective goals.
Main similarity between organisations ?
They take input and makes output.
Why people need organisations.?
Share skill and knowledge
Two main category of organisations?
Commercial and not-for-profit
Categories under commercial organistions?
Sole trader- Run by one dude. Liabilities on the owner
Partnership - Owned and run by two or more.
Limited liability companies.
#Private limited
#Publlic limited
How partnership business is structure legally? (commercial businesses)
Traditionally partnerships did not have a legal identity from their owners. So when you sue you sue them. But recently many countries have created alternative partnership structures such as LLPs (limited liability partner) where they exist as separate legal entity and the owners liability is the amount they have invested into the partnership.
Difference between public limited and private limited comapanies.?
Private limited companies tend to smaller businesses owned by a few shareholders. Shares cannot be offered to the general public
Public limited companies are larger businesses with large amount of shareholders and common public which makes it easier for the company to raise finance.
What are LLPs?
Limited liability partners legal commitment only for the amount they have invested into the partnership.
Three types of business entities?
Sole trader
Partnership
Limited Liabilities company.
What are limited liability companies?
They are established as separate legal entities to their owners. achieved through INCORPORATION. The owners (SHAREHOLDERS)
What are NFPs?
Not-For-Profit are organization set up to satisfy a particular need of their members or provide help and benefits to different parts of society.
Example: Red Cross, Oxfam, Doctors without borders.
Example of NFPs?
Gov departments and agencies- HM revenue and Customs
Schools and Hospitals
Charities (Red cross)
Clubs
What are public sector organisations?
The organisations controlled by the government that is concerned with providing basic government services.
Examples of Public sector organisations?
Police
Military
Public transport
primary education
healthcare for financially challenged (poor)
Private sector organisations? Examples?
Organisations run by private individuals or groups.
Businesses
Charities
clubs
What does private sector organisations include?
Both profit seeking and NFP organisation are inluded in private sector.
Another name for NFP?
NPO
What are NGOs?
Non governmental organisations - These are organisation neither geared toward profit making nor belongs to the national government.
THEY OFTEN PROMOTE POLITICAL SOCIAL OR ENVIRONMENTAL CHANGE WITHIN THE COUNTRIES THEY OPERATE.
NGO’S EXAMPLE?
RED CROSS - ALSO AN NFP
DOCTORS WITHOUT BORDERS - NFP
GREENPEACE - NFP
AMNESTY INTERNATIONAL- BASED IN UK FOR HUMAN RIGHTS
How does voting take place in Limited liabilities companies?
Usually the shareholders get one vote for each of their shares they own.
How does voting take place in Co-operatives?
Each member will get one vote regardless whether thy own shares or not.
One difference between Co-operatives and LLCs
What are co-operatives? think democracy?
Organisations that are owned and DEMOCRATICALLY controlled by their members that is the people who buy their goods or services.
They are like the discount cards you get from sobeys
Example of a Co-operative from UK?
Co-operative Group over 5.5million members
Barcelona football club is owned by fans
How to differentiate between organisations ?
Ownership
Private Sectors- Owned by Shareholders or indiviuals
Public Sector - Owned by governments
Co-operatives - Owned by members (consumers, residents etc)
Objectives.
Private Sectors- Maximisation of owner wealth.
Public Sec and charities - Social services (mostly)
Source of Funding
Public Sector - Money from central gov
Private sector organisation- Shareholders/owners
Size
Liability. Who is responsible when sued