CAT / FIA FBT Syllabus A. The Business Organisation, Its Stakeholders - Define business Organisation - Notes ^{1 / 5}

“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.