ACCA - AB - Chapter 1

  1. Buchanan and Huczynski definition - Organisation - 3 Parts
    • Social Arrangements - Two or more people working together in a structured way (by this definition, someone working alone cannot be classed as an organisation.)
    • Controlled Performance - Systems and procedures to regulate staff behavior
    • Collective Goals - Pursuit of goals over and above individual aspirations
  2. Similarity between most Organisations
    They are mainly concerned with taking inputs and transforming them into outputs
  3. Organisations Enable People to (3)
    • Share skills & knowledge - allows people to perform tasks they would not be able to on their own
    • Specialize
    • Pool resources (whether money or time)
  4. Three Common Types of Commercial Companies (3)
    • Sole Traders
    • Partnerships
    • Limited Liability Companies (Private Limited + Public Limited)
  5. Limited Liability Company & 2 Types
    • Company has a separate legal identity from owners (Shareholders)
    • Types = Private Limited Company (LTD) & Public Limited Company (PLC)
  6. Organisations can achieve more than an individual can on their own - this is known as:
  7. Organisational Types
    • Profit Seeking vs Non-Profit Seeking
    • Public Sector vs Private Sector vs Corporations
  8. Org owned and run by one person. Owner is not legally separate from the business.
    Sole Trader
  9. Org owned and run by two or more people. Like sole traders, owners are legally same as company.
  10. Tends to be smaller businesses, owned by a few shareholders. Shares cannot be offered to general public.
    Private Limited Company (LTD)
  11. Larger businesses with shares that can be offered to general public - makes it easier to raise finance to enable growth.
    Public Limited Company (PLC)
  12. Company that has a separate legal identity to its owners (known as shareholders) - the owner's liability is limited to the amount they have invested into the company
    Limited Liability Companies (LTD / PLC)
  13. Organisations that are owned and democratically controlled by their members (the people who buy their goods/services). Each member usually gets a single vote on key decisions - organised to meet needs of owners who share any profits
  14. Chapter 1 - The Business Organisation - Summary
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ACCA - AB - Chapter 1
ACCA - AB - Chapter 1