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What are business organisations?
Social arrangements for the controlled performance of collective goals.
Which of the following are common features of business organisations? (Select all that apply)
Why do we need organisations?
To share skills and knowledge, specialise, and pool resources.
What is a sole trader?
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What is the main objective of commercial organisations?
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What is a public sector organisation?
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Which of the following is NOT a type of not-for-profit organisation?
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NGOs typically do not have profit as their ______ goal.
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Limited Liability Companies have a separate legal identity from their owners.
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What is a co-operative?
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Study Notes
Business Organisations
- Defined as social arrangements for controlled performance towards collective goals.
- Characterized by three aspects: collective goals, social arrangements, and controlled performance.
Need for Organisations
- Facilitate sharing skills and knowledge among individuals.
- Enable specialization, allowing workers to develop expertise in specific areas.
- Pool resources such as money and time for more effective operations.
Types of Organisations
Commercial Organisations
- Focus on maximizing wealth for owners.
- Common forms include:
- Sole Traders: Owned and run by one person; not legally separate from the business.
- Partnerships: Owned by two or more people; can have limited liability structures (e.g., LLPs).
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Limited Liability Companies (LLCs): Separate legal identity; owners (shareholders) have limited liability.
- Private Limited Companies (Ltd): Typically smaller, shares not available to the public.
- Public Limited Companies (plc): Larger, shares offered to the public, enabling greater finance and growth.
Not-for-Profit Organisations (NFPs)
- Do not prioritize profit; rather, focus on meeting societal or member needs.
- Examples include government departments, schools, hospitals, and charities.
Public vs. Private Sector
- Public Sector: Provides basic government services; controlled by government entities (e.g., police, military, education).
- Private Sector: Comprises businesses and charities not directly controlled by the government; can include profit-seeking and not-for-profit entities.
Non-Governmental Organisations (NGOs)
- Operate independently from the government; prioritize social, political, or environmental change.
- Examples include Red Cross, Doctors Without Borders, Greenpeace, and Amnesty International.
Co-operatives
- Democratically controlled by members who buy goods/services; each member has one vote.
- Profits are typically shared among members.
Sectoral Operations of Organisations
- Organizations operate in diverse sectors:
- Agriculture: Food production, processing, packaging.
- Mining: Extraction and processing of minerals.
- Finance: Profit generation through investments and lending.
- Retail: Selling goods from manufacturers to consumers.
- Service: Delivering intangible goods and services.
- Transportation: Moving goods between locations.
Summary of Organisations
- Ownership: Varies from individual or shareholder ownership in the private sector to government control in the public sector and member ownership in co-operatives.
- Objectives: Differ greatly, from social services in public and charity sectors to profit maximization in commercial entities.
- Activities: Tailored to support specific organisational objectives.
- Funding Sources: Public sector relies on government funding, while private entities raise funds through owners or donations for charities.
- Size: Ranges from multinational corporations to sole traders.
- Liability: Sole traders and partnerships face personal liability for business losses; LLC owners enjoy limited liability protection.
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Description
This quiz covers Chapter 1 of the ACCA Business & Technology (BT) course, focusing on the definition and formation of business organisations. It also explores the common features, differences, and types of business organisations across various sectors. Test your understanding of foundational business concepts and terminology.
