What are key aspects of business organisation:
- Collective goals
- Social arrangements= organisations are structured to allow people to work together towards a common goal. No solo work
- Controlled performance=organisations will have systems and procedures in place to ensure that group goals are achieved. Such as setting sales targets
What is a business organisation:
- Organisations are social arrangements for the controlled performance of collective goals
Why do we need organisations:
Organisations enable people to:
- Share skills and knowledge= organisations can help people develop skills that they are unable to achieve on their own and this knowledge can be shared within the organisation
- Specialise
- Pool resources- whether money or time
what is the aim of commercial organisation
main aim is maximising the wealth of their owners
what are the 3 common forms that a commercial business can take:
- Sole traders
- Partnership
- Limited liability companies
what are sole traders
business run and owned by one person. The owner is not legally separate from the business itself. So if sued by a customer the customer is actually suing the owner
what are patnership
organisation is run by 2 or more people. Traditionally partnerships(like sole traders) do not have a separate legal identity from owners.
what is limited liability company
- Limited liability companies= a company has a separate legal identity to its owners (shareholders). The owners’ liability is limited to the amount they have invested into the partnership
types of limited liability company
Private limited companies (Ltd)
Public limited companies (plc)
what is a private limited company ltd
Private limited companies (Ltd)= shares can’t be offered to the general public also tend to smaller businesses own by a few shareholders
what is a public limited company
Public limited companies (plc) = shares are offered to the general public so millions of different shareholders. This makes it easier for the company to raise finance, enabling further growt
what is a not for profit organisation
Not for profit organisations (NFPs or NPOs) do not see profit as their main aim, they seek to satisfy the needs of their members of the sector of society that seek to benefit.
what is a pubic organisation
concerned with providing basic government services and controlled by the government (police, TFL,NHS, army)
what is a private organisation
consist of organisation that are run by private individuals and groups rather then government (businesses, charities, clubs)
what is a non-governmental organisation
is one were the primary goal is not profit and not directly linked to the government
what are co-operatives
are organisations that are owned and controlled by their members-the people who buy their goods or services. Each member gets a single vote unlike companies where shareholders get one vote for each share they own. Solely to meet the need of the member-owners
what are differct sectors organisation operate in
- Agriculture
- Mining
- Finance
- Retailers
- Service
- Transport
