Business Organisations and their Stakeholders 1 Flashcards
(35 cards)
What is an organisation?
A social arrangement for the pursuit of collective goals, with a boundary to separate it from the environment
Why do organisations exist?
To achieve results that ind are not able to do by themselves
What do all organisations have in common?
They pursue a variety of objectives and goals
Different people do different things or specialise in one activity
Keen to achieve good performance, meeting or improving their standards
Contain formal, documented systems and procedures that enable them to control what they do
How do organisations differ?
Ownership
Control
Activity
Profit vs non-profit orientation
Legal form
Sources of finance
Technology
What is the essence of agriculture?
Producing and processing of food
What is the essence of manufacturing?
Acquiring raw materials and by the application of labour and technology, turning them into a product
What is the essence of extractive/raw materials?
Extracting and refining raw materials e.g. mining
What is the essence of energy?
Converting one resource into another
What is retailing and distribution?
Delivering goods to the end consumer
What is the essence of intellectual production?
The production of intellectual property
What is the essence of service industries?
Includes retail, distribution, trandport banking, various services
What is the essence of information tech?
Hardware, software and communication links
What are the key categories of business organisation?
Commercial
Not for profit
Public sector
Charities
Trade unions
Local authorities
NGOs
Co-ops and mutual associations
What are the key sources of difference between profit and non-profit organisations?
Owner and other stakeholders
Sources of funding
Goals
How they measure performance
Use of technology
What are public sector organisations?
Organisations that are owned or run by the government are known as being in this
What is a limtied liablity compnay?
These are a separate legal entity from owners
What are notable advantages of a limited company?
More money available for investment from shareholders
Easier to raise capital from banks and other lenders
Ownership ad control are legally separated meaning investors need not run the company
What are notable disadvantages of limited liability companies?
Greater administrative burden and cost, esp for listed entities
What are the two types of limited companies in the UK?
Private limited companies
Shares of public companies
What arethe different types of busines organisation?
Commercial
Not for profit
Public sector
Chrities
Trade unions
Local authroites
NGOs
Copperative socs and mutal assoications
Whatare the key soruces of differenecs?
Owner and other stakerhodles
What are the two types of limited companies?
Private companies
Shares of piblic comapnes to be traded on the stock exchanges
What is a cooperative socieities
Cooperatives are businesses owned by their workers or customers, who share their profits:
Open membership
Democratic control
Dsitribution of the surplus in prop to pucheass
Promotion of education
Social goals
Why do organisations exist?
To achieve results that ind are not able to receive by thesmelee
