Business Functions and Organization Quiz

Overview of Business Organization and Functions

• A business organization is a group of people who work together to achieve commercial goals.
• The focus of MA1 studies is on business organizations, but the techniques learned can apply to managing charities and not-for-profit organizations.
• Common functions of all business organizations are purchasing, production and operation, sales and marketing, finance, and human resource or personnel.
• Purchasing aims to ensure the business buys products and services of the required quality at the best price.
• The production function is responsible for producing the goods or providing the services that the business sells.
• The sales function generates sales and ensures that transactions proceed smoothly, while marketing builds awareness and attracts leads to the business.
• The finance function processes financial data, monitors cash flow, and records receipts and payments from customers and suppliers.
• The human resource or personnel function is responsible for hiring and firing employees, training, health and safety, and overall staff welfare.
• Other functions of a business organization may include information technology, research and development, after-sales service/customer care, facilities, and general administration.
• The organization of a function will differ according to the size of the organization.
• Policy is a guide to be followed in a given set of circumstances, procedure is a sequence of steps for completing a specific activity, and best practice is a consistently effective procedure.
• An organization chart shows how the different functions within a business are organized and demonstrates formal relationships, communication flows, and reporting channels within the organization.