Business Organization Notes

Summary:

These Business Organization Notes provide a comprehensive overview of the concept of business and its organizational structures. Starting with Unit 1, the meaning of business is explored, highlighting its role in society and differentiating between commerce, occupation, and organization. The unit also discusses the four main productive resources necessary for business: land, labour, capital, and enterprise. Moving on to Unit 2, the focus shifts to the various forms of business organizations. Sole proprietorships, partnerships, corporations, cooperatives, associations, franchises, trusts, and mergers/acquisitions are examined, with each form’s characteristics, advantages, and disadvantages explained. The importance of selecting the appropriate legal structure for a business is emphasized.

This document also helps individuals gain a comprehensive understanding of the different aspects of business, from its fundamental meaning to the available organizational structures. This knowledge equips them to make informed decisions when establishing, participating in, or evaluating business ventures.

Excerpt:

Business Organization Notes

Unit 1: What is a Business?

1. Introduction If you walk down any street in the cities and towns, you will notice that many of the shops display their names for all to see. It may be Chipiku Stores, FoodZone, Tilitonse Stores, and known chain stores such as Shoprite or Game Stores. All these are businesses, but each with a different status in terms of how it is operated, who the owner is, and how any profit is shared. But have you ever wondered what a business is? You will learn in this Unit about the meaning of business and differentiate the three meanings of business as commerce, occupation, and organization, and identify the four main kinds of productive resources. In addition, you will also learn about the role of business in the socio-economic development of any country.

1.1 Objectives By the end of this unit, you should be able to:

1. Define the term ‘business’
2. Differentiate the three meanings of business as commerce, occupation, organization, and system
3. Explain the four main kinds of productive resources in business.
4. Evaluate the role of business in the economic development of any country.