IBDP Business Management Business Organisation And Environment Chapter 2 Notes

types of organization

STUDY NOTES FOR BUSINESS MANAGEMENT – BUSINESS ORGANISATION AND ENVIRONMENT CHAPTER 2 – TYPES OF ORGANIZATION

These notes have specially been curated by expert teachers to simplify and enlighten concepts given in IB Business Management HL. The notes are comprehensive in nature and are sufficient to study the chapter in depth and one need not look for other resources beyond the notes provided on our website which can be accessed for free. The notes for Types of Organizations IBDP HL are available on our official website and can be downloaded for free.

Business management IBDP is a part of group 3 Individuals and the Society of the IB curriculum. The IBDP Business Management course has been devised for imparting knowledge and understanding of different theories of Business Management and application of various tools and methods. It enables the students to analyze and evaluate business activities at all levels- local, national, or international, It also  helps in developing holistic understanding of the business environment today which is complex and fast changing.

The subject covers important characteristics of business organization and business functions of human resource management, finance and accounting, marketing, and operations management. The purpose of the course is to help students develop skills that enable them to think critically and make the right decisions after carefully evaluating and analyzing the issue at hand. It also aims at developing the understanding of importance of innovation and exploring business from different cultural perspectives.

The chapter on the Types of Organizations begins with classifying business based on ownership and profitability. A business can be owned and run by the state or central government or private individuals. The many important contributions of the public sector businesses are explained. We also understand the difference between profit-based organizations, for profit social enterprises and non-profit social enterprises. An enterprise that is owned and run by a single person is known as a sole proprietorship, the advantages and disadvantages of which are discussed. Terms like partnership and corporation are explained thoroughly.

Next, we study the steps for the formation of a company which involves the promotion stage, incorporation stage, capital subscription stage followed by the commencement of business. The differences between private limited companies and public limited companies are further given in brief. Furthermore, the three for-profit social enterprises i.e., co-operatives (which are owned privately but controlled by the people who use its products), microfinance providers (which provide financial assistance to people with low income) and public-private partnerships (PPPs) (which are profit-making social enterprises formed by the partnership of government and private sector enterprise) are analyzed. Not for profit social enterprises like NGOs and charities are also examined.