Business Organisations Flashcards
Two types of economics?
Macro & Micro
What are economics?
Concerns the allocation of scarce resources
What are microeconomics?
Deals with decisions at the level of the company based on the type of organisation and their market
What are macro economics?
Considers the impact of governmental decisions on the economy
What is a sole trader?
A single-person business where this person performs every role
What is an organisation?
A group of people organised and managed in a way that aims to follow a corporate
goal or need.
What are the three features of an organisation?
Goals, Structure, Systems & Procedures
Organisations facilitate the sharing of what?
Ideas, experience, knowledge, skills, resources
What two sectors can organisations be a part of?
Public & Private
What two types of private sector organisation are there?
Profit Seeking & Not for Profit
What types of profit seeking organisations are there?
Unincorporated & Incorporated
What types of incorporated organisations are there?
Sole Trader & Partnership
What types of incorporated organisations are there?
Private Limited Company (Ltd) and Public Limited Company (PLC)
What types of public sector organisations are there?
State Owned Industry & Government Office
What are the features of a private sector organisation?
Owned by investors, responsible to shareholders, can run for profit or not for profit
What are the features of a public sector organisation?
Owned by the state, responsible to the government, usually run not for profit
Not for profit organisation can also be known as what?
NGO - Non Governmental Organisation
What is an NGO?
Non Governmental Organisation: private sector organisation that isn’t run for profit, instead focuses on other goals
What is an incorporated organisation?
When the business owners and the business itself hold the same legal identity
What is an incorporated organisation?
When the business owners and the business have separate legal identities
What are the features of a private limited company?
Shares can’t be issues to the public
Owners retain a high degree of control
Small number of shareholders to report to
Tends to be smaller companies
What are the features of a public limited company?
Shares can be issues to the public and traded on the stock exchange
Owners can lose overall control by selling shares
Large numbers of shareholders to report to
Additional regulations to adhere to
Usually larger companies that issues shares to fund business ventures
What are another 2 types of organisation?
Mutual and co-operative
What is a co-operative organisation?
Where the welfare of members is a key goal
