Chapter 1 Flashcards
What is an organisation?
Social arrangements for the controlled performance of collective goals.
What is social arrangement?
people working together as a team trying to achieve a common goal
What is controlled performance?
systems, procedures and targets in place, purpose of business
Why do we need organisations?
1) Share skills and knowledge
2) Specialise
3) Pool resources
What are the profit seeking organisations?
Sole traders, Partnerships, Limited Liability
What are non-profit organisations?
Public sector, private sector, NGO’s (non-government organisations)
Can a private limited company sell their shares?
No
Can a public limited company sell their shares?
Yes
What is a co-operative?
Owned by members (people who buy their goods). Members then share profits they make.
What is the financial aim of a Private/profit oriented sector?
Make profit and increase share holder wealth
What is the financial aim of a not for profit public sector?
Provide service and achieve value for money
Who is the organisation accountable to in a private/profit oriented sector?
shareholders
Who is the organisation accountable to in a not for profit public oriented sector?
Trustees/government/ public
How are private/profit oriented sector financed?
Retained profit and share capital
How are not for profit/ public oriented sector financed?
Donations/ government subs
