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FBT
Chapter 1

The Purpose and Types of Business Organisation

Learn how organisations are formed, how they differ and how to classify them accurately.

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Study questions

Answer aloud or in writing before revealing. Written recall is stronger than recognition.

QC1.1

State the definition of a business organisation in one sentence.

QC1.2

Give two reasons why organisations are formed.

QC1.3

For a fund administrator, identify one input, one process and one output.

QC2.1

Name four common features of organisations.

QC2.2

Why would profitability be an incomplete measure of success for a public hospital?

QC3.1

Classify a privately owned bakery that makes packaged bread by control, purpose and activity.

QC3.2

Classify a government-owned city bus operator by control and activity.

QC3.3

Why do public sector and public company not mean the same thing?

QC4.1

Explain the difference between NGO and not-for-profit.

QC4.2

Identify two features of a cooperative.

QC4.3

Can an NGO receive government funding and remain an NGO?

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