Cima E1 Study Material

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CIMA E1 Course Notes Chapter 1 Introduction to Organisations © Strategic Business Coaching Ltd 2014 Personal use only - not licensed for use on courses Any unauthorised copying or sharing of this material is punishable by CIMA under the CIMA code of ethics 1. Organisations Introduction An organisation is a social group of people that is organised and managed in a way that aims to follow a corporate goal or need. All types of businesses follow a structure that is controlled by management who determine how the business performs particular activities and the key roles and responsibilities of it's members. Types of organisation The economy of a country can generally be split into two sectors: the private sector and the public sector. Organisations within these sectors can be profit seeking or not for profit.

Profit seeking organisations Profit seeking organisations operate to maximise returns for owners or shareholders. Ronnie Earl Deep Blues Rar there. Therefore, profitability is their primary objective. Such organisations can be split into two main groups which are distinguished by the extent of liability the owners have for company debts. Unincorporated – the business owners and the business itself hold the same legal identity. This means the owners are held personally responsible for the debts a company may incur.