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    MGT 111 - Module 1

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    Super Man of Steel
    This module discusses the structure, functions, and objectives of organizations. It defines an organization as a group working together to achieve a common purpose. The key elements of an organization are its objectives, relationships between members, systems used, and lines of authority. Organizations can be classified as commercial or non-commercial based on their purpose. Commercial organizations include sole proprietorships, partnerships, and corporations, which differ in ownership structure, liability, and taxation. Non-commercial organizations are non-profit entities like public sector and nonprofit groups. The module also identifies common types of businesses by their primary activities such as services, merchandising, and manufacturing.

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    MGT 111 - Module 1

    Uploaded by

    Super Man of Steel
    82 views2 pages
    This module discusses the structure, functions, and objectives of organizations. It defines an organization as a group working together to achieve a common purpose. The key elements of an organization are its objectives, relationships between members, systems used, and lines of authority. Organizations can be classified as commercial or non-commercial based on their purpose. Commercial organizations include sole proprietorships, partnerships, and corporations, which differ in ownership structure, liability, and taxation. Non-commercial organizations are non-profit entities like public sector and nonprofit groups. The module also identifies common types of businesses by their primary activities such as services, merchandising, and manufacturing.

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    This module discusses the structure, functions, and objectives of organizations. It defines an organization as a group working together to achieve a common purpose. The key elements of an organization are its objectives, relationships between members, systems used, and lines of authority. Organizations can be classified as commercial or non-commercial based on their purpose. Commercial organizations include sole proprietorships, partnerships, and corporations, which differ in ownership structure, liability, and taxation. Non-commercial organizations are non-profit entities like public sector and nonprofit groups. The module also identifies common types of businesses by their primary activities such as services, merchandising, and manufacturing.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    82 views2 pages

    MGT 111 - Module 1

    Uploaded by

    Super Man of Steel
    This module discusses the structure, functions, and objectives of organizations. It defines an organization as a group working together to achieve a common purpose. The key elements of an organization are its objectives, relationships between members, systems used, and lines of authority. Organizations can be classified as commercial or non-commercial based on their purpose. Commercial organizations include sole proprietorships, partnerships, and corporations, which differ in ownership structure, liability, and taxation. Non-commercial organizations are non-profit entities like public sector and nonprofit groups. The module also identifies common types of businesses by their primary activities such as services, merchandising, and manufacturing.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    MODULE 1:

    ORGANIZATION: STRUCTURE, FUNCTIONS, AND OBJECTIVES

    Time allotment: 3 hours

    Objectives:

    Upon completion of this module, students are expected to:

    1. Explain the nature and elements of an organizations;


    2. Classify the organization and enumerate their advantages and disadvantages;
    3. Compare the different types of business; and
    4. Identify the environment affecting organizations.

    Nature of Organization

    - An organization is a group of people who work together to achieve some specific purpose.

    Elements of an Organization

    Organization embraces some of the crucial elements as follows:

    1. Objectives – are defined goals to accomplish as a group.


    2. Relationships – organization involves interaction among the people to achieve the goal.
    3. Systems – the methods or plan of procedure combined with resources and people to achieve
    the objective.
    4. Authority – the key to a management job since without authority organized action will be
    unattainable.

    Classification of Organizations

    As to purpose, organization may be classified as commercial and non-commercial organizations.

    Commercial or Business Organizations according to ownership:

    1. Single Proprietorship – usually managed by one person.


    Advantages Disadvantages
    o Easiest to start and set up Unlimited liability
    o Only one decides for the business Limited resources
    o All profits are for the owner All loses are borne by the owner
    o The owner, not the business is taxed Limited life
    o Easy to dissolve
    2. Partnership – When to or more persons bind themselves to contribute resources to a common
    fund in their co-owned business for a profit.
    Advantages Disadvantages
    o Easy to form Unlimited liability
    o Joint resources All partners may be held liable for the action of
    One partner
    o Lesser Government supervision Consensual and restricted transfer of ownership
    o Tax-exempt if professional partnership Limited life
    o Corporate tax if commercial partnership
    3. Corporation – A more formal business organization than partnership. Composed of five or more
    owners generally called “incorporators”, “corporators”, and/or “stockholders”.
    Advantages Disadvantages
    o Limited Liability Most costly and difficult to organize
    o Power of succession Only the BOD and other authorized officers can
    Bind the corporation in contract
    o Greater source of resources Shareholders have limited access and control
    Over management and operations
    o Renewable and perpetual life More stringent government supervision and
    Restrictions
    Taxed at a flat 30% income tax rate

    Primary Activities of Businesses

    - A business may be classified based on its primary activities. The most common types of
    businesses as to their nature or main activities are as follows:
    1. Servicing. This type of business render services to clients in exchange for a fee.
    2. Merchandising. This business engages in the “buying” and “selling” of goods.
    3. Manufacturing. This business converts raw materials into finished goods that are to be sold
    at selling price.

    Non-Commercial Organizations

    Non-commercial organizations are organized primarily not for profit.

    1. Public Sector Organization


    2. Nonprofit Organization

    Key Personnel

    Sole Proprietorship Business – Owner and/or the Manager

    Partnership – Managing Partner or other partners

    Corporation – shareholders

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