Business Organisation- Session 1 Flashcards
What is an organisation
Social arrangements for the controlled performance of collective goals
-Buchanan and Huczynski
Why do we need organizations
-share skills and knowledge
specialise
pool resources
Define synergy
achieve results that cannot be produced by individuals on their own
What is the main objective of profit seeking organizations
maximise wealth of shareholders-profit maximisation
3 objective of wealth maximisation
1.continue in existence
2. maintain growth and development
3.make a profit
What is mkt standing
whether you are mkt leader or follower
Who said the objectives of profit maximisng firms are mkt standing, innovation, productivity, physical and financial resources, profitability, manager performance, worker performance, public responsibility
Peter Drucker
Which type of company has seperate legal personality
limited companies
Who appoint directors
Directors are appointed by shareholders
What is limited liability
max amt shareholders can lose is capital invested interms of shares, their personal assets are not at risk
Who has actual power
Board of directors
shareholders are owners but lack power
only power is voting at AGM
what are NGO’s
independent voluntary associations of people acting together for some common purpose
- not owned by govt
-dont aim at profit maximising
what are coorperative
autonomous association of persons united voluntarily to meet their common economic,social,cultural needs
-owned and controlled by members to meet needs of members
