Define business Organisation

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Organisations are defined as:

social arrangements for the controlled performance of collective goals” (Buchanan and Huczynski)

There are different types of organisations, all of which, whether they are profit or non-profit must concentrate on coordinating the 3 points.

These are:

  1. Social Arrangement

  2. Collective Goals

  3. Control of Performance

Types of organisation

Accountants are employed by different types of organisation. Organisations can be divided into two main types:

  1. Business organisations

    Business organisations engage in commercial and industrial activities, with the purpose of making a profit.

  2. Not-for-profit organisations

    Not-for-profit organisations do not seek to make a profit, they exist to provide a benefit to the public, such as good government or key services such as health, education, a police.

    They can be divided into two main types: 

    Public sector organisations: these are government departments or organisations that are funded by the  government

    Non-government organisations: these are not-for-profit organisations that are partly or wholly funded from non-government sources. 

    Examples are charities, clubs and societies.

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