The Business Organisation Flashcards
Define what all organisations have in common using Buchanan and Huczynski’s definition.
‘Organisations are social arrangements for the controlled performance of collective goals.’
Note the three key aspects that define an organisation and give examples of each.
- collective goals i.e the main goal of a school is to educate pupils.
- social arrangements i.e organisations are structured to allow people to work together towards a common goal.
- controlled performance i.e an organisation will have systems and procedures in place to ensure that group goals are achieved.
Name a major similarity between most organisations.
Most organisations are mainly concerned with taking inputs and transforming them into outputs.
Which of the following would not be considered to be an organisation according to the definition produced by Buchanan and Huczynski?
A a sole trader
B a tennis club
C a hospital
A sole trader as has to be part of a ‘collective’
Name three examples why we need organisations
Share skills and knowledge
Specialise
Pool resources
Explain the meaning of synergy
Synergy allows organisations to achieve more than the individuals could on their own
Outline the three aspects within organisations that lead to synergy.
Share skills and knowledge
Specialise
Pool resources
Name the three common forms that a commercial organisations can take
Sole traders
Partnerships
Limited liability companies
Explain the term sole traders
Owned and run by one person
Owner is not legally separate from the business
Explain the term partnership
Owned and run by two or more individuals.
Traditionally do not have separate legal identity from owners although some have created alternative partnership structures (such as LLP) which means business exists as separate legal entity and the owners liability is limited to the amount they have invested into the partnership
Explain the term limited liability companies
Company has separate legal identity to its owners (who are known as shareholders). Owners liability limited to amount invested into the company
Name the two types of limited companies (UK)
Private limited companies
Public limited companies
What three letters would be in a private limited company?
Ltd
What three letters would be in a public limited company?
Plc
Can shares be offered to the general public in a private limited company?
No
Can shares be sold to the public in a public limited company?
Yes
What are the two abbreviations for not for profit organisations?
NFPs and NPOs
What is one key difference between NFP organisations and commercial organisations?
They do not see profitability as their main objective.
Name 3 examples of NFPs
Government departments and agencies I.e HMRC
Schools
Hospitals
Charities I.e Red Cross, oxfam Doctors Without Borders
Clubs
Name 3 organisations that are public sector organisations (U.K.)
Police Military Public transport State education Healthcare I.e NHS
Name three types of organisations that are considered private sector
Businesses
Charities
Clubs
Within these will be both profit-seeking and NFP organisations
Define a non-governmental organisation (NGOs)
An organisation which does not have profit as its primary goal and is not linked to the national government.
Name two example of NGOs
The Red Cross
Doctors Without Borders
Green peace
Amnesty international
Define a co-operative
Organisations that are owned and democratically controlled by their members
Who will share the profit from a co-operative?
Members will share any profits
Name three sectors in which organisations operate
Agriculture
Mining
Finance
Retailers
Service
Transportation
Name three of the key difference between the various types of organisations
Ownership
Objectives
Activities
Sources of funding
Size
Liability
