Summary FIA BUSINESS AND TECHNOLOGY FBT (ACCA F1) - ACCA

LThe busniess organization
Organization are social arrangements for controlled
performances or collective goals – Buchanan and
Huczynski
Key aspects of definition
 Collective goals
 Social arrangements
 Controlled performance


Why do we need organizations
Organization enables people to:
 Share skills and knowledge
 Specialize
 Pool resources
This results in synergy where the organization achieve
more than the individuals could on their own
Different types of organization
Commercial vs not for profit
Commercial organization
Commercial (or profit seeking) organizations see their
main objectives as maximizing the wealth of their owners
3 forms commercial company can take
o Sole traders
o Partnerships
o Limited liability company
 Private limited companies