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ACCA F1 > Chapter 1 - The Business Organisation > Flashcards

Chapter 1 - The Business Organisation Flashcards

1
Q

What is an organisation?

A

‘Organisations are social arrangements for the controlled performance of collective goals’ (Buchanan & Huczynski)

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2
Q

Why do we need organisations?

A

Enable people to:

  • Share skills and knowledge
  • Specialise
  • Pool resources
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3
Q

Classify organisations by profit orientation.

A
  • Profit seeking organisations
  • Not-for-profit organisations
    ~ (Mutual organisations)
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4
Q

What are the objectives of a ‘profit seeking’ organisation?

A
  • To continue in existence (survival)
  • To maintain growth & development
  • To make a profit
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5
Q

What are the objectives of a ‘not-for-profit’ organisation (‘NFPs’ or ‘NPOs’)?

A

Objectives vary tremendously:

  • Hospitals exist to treat payments
  • Councils care for their communities
  • A charity provides relief to victims of disasters
  • Govt organisations implement govt policy
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6
Q

What are some examples of NFPs/NPOs?

A
  • Govt departments & agencies (e.g. HMRC)
  • Schools
  • Hospitals
  • Charities
  • Clubs
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7
Q

What is a mutual organisation?

A

Voluntary not-for-profit associations formed for the purpose of raising funds by subscription of members, out of which common services can be provided to those members.

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8
Q

What are some examples of mutual organisations?

A
  • Some building societies
  • Trade unions
  • Some working-men’s clubs
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9
Q

Classify organisations by ownership/control.

A
  • Public sector organisations
  • Private sector organisations
  • Co-operatives
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10
Q

What is a public sector organisation?

A

That part of the economy that is concerned with providing basic govt services & is thus controlled by govt organisations.

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11
Q

What are some examples of public sector organisations?

A
  • Police
  • Military
  • Public roads
  • Public transit
  • Primary education
  • Healthcare for the poor
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12
Q

What is a private sector organisation?

A

Comprising of non-govt organisations, is that part of a nation’s economy that is not controlled by the govt.

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13
Q

What are some examples of private sector organisations?

A
  • Businesses
  • Charities
  • Clubs

Within these will be profit-seeking & NFPs/NPOs.

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14
Q

What is a Co-operative?

A

An autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise.

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15
Q

What are the main characteristics of co-operatives?

A
  • They are owned and democratically controlled by their members (the people who buy their goods or use their services). They are not owned by investors.
  • They are organised solely to meet the needs of the member-owners, not to accumulate capital for investors.
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16
Q

How do co-operatives differ from mutuals?

A

They are similar in that they are owned by the members/clients they exist for. However, they tend to deal in primary tangible goods and services (e.g. Agricultural commodities, utilities) rather than intangible products (e.g. Financials services).

17
Q

What are the main departments in a business organisation? (8)

A
  • R&D
  • Purchasing
  • Production
  • Direct service provision
  • Marketing
  • Administration
  • Finance
  • Human Resources
18
Q

What is the role of the R&D department?

A
  • Improve existing products

- Developing new products

19
Q

What are the key concerns of the R&D department?

A
  • Anticipating customer needs
  • Generating new ideas
  • Testing
  • Cost
20
Q

What is the role of the Purchasing department?

A
  • Acquiring the goods and services necessary for the business
21
Q

What are the key concerns of the Purchasing department?

A
  • Price and payment terms
  • Quality
  • Stock levels/delivery schedules
22
Q

What is the role of the Production department?

A
  • Converting raw materials into finished goods
23
Q

What are the key concerns of the Production department?

A
  • Quality (of materials & finished goods)
  • Costs
  • Wastage/efficiency
  • Stock levels/Production schedules
24
Q

What is the role of the Direct Service Provision department?

A
  • Providing services to clients (e.g. Accountancy firm)
25
Q

What are the key concerns of the Direct Service Provision department?

A
  • Quality

- Time sheets/scheduling

26
Q

What is the role of the Marketing department?

A
  • Identifying customer needs
  • Market research
  • Product design
  • Pricing
  • Promotion
  • Distribution
27
Q

What are the key concerns of the Marketing department?

A
  • Customer needs
  • Quality
  • Promotional strategy
  • Distribution channel strategy
  • Pricing strategy
28
Q

What is the role of the Admin department?

A
  • Administrative support

- Processing transactions

29
Q

What are the key concerns of the Admin department?

A
  • Efficiency

- Information processing

30
Q

What is the role of the Finance department?

A
  • Bookkeeping
  • Financial reporting
  • Financial controls
  • Budgeting
  • The raising of capital
31
Q

What are the key concerns of the Finance department?

A
  • Accuracy & completeness of record keeping
  • Monthly management reporting
  • Annual financial reporting
32
Q

What is the role of the Human Resources department?

A
  • Job analysis & job design
  • Recruitment & selection
  • Performance appraisal
  • Rewards (e.g. Setting pay)
  • Training & development
  • Grievances & discipline
33
Q

What are the key concerns of the Human Resources department?

A
  • Staff competence
  • Staff commitment/motivation
  • Cost
  • Staff welfare (e.g. Stress)
  • Compliance (e.g. Equal opportunities legislation)

ACCA F1 (1 decks)

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