Bpp learning Media is an acca approved Content Provider

 overcome people's individual limitations
, whether physical or intellectual. 
(b) Organisations
 enable people to specialise
in what they do best. 
(c) Organisations
 save time
, because people can work together or do two aspects of a different task 
at the same time. 
(d) Organisations
 accumulate 
and share 
knowledge
. 
(e) Organisations 
enable 
synergy
: by bringing 
together
 
two individuals their combined output will 
exceed their output if they continued working separately. 
In brief, organisations enable people to be 
more productive
. 
1.3 How organisations differ 
The common elements of organisations were described earlier, but organisations also differ in many 
ways. Here are some possible differences. 
(a) 
Ownership 
Some organisations are owned by private owners or shareholders. These are private sector 
organisations. Public sector organisations are owned by the government. 
(b) 
Control 
Some organisations are controlled by the owners themselves but many are controlled by people 
working on their behalf. Some are indirectly controlled by government-sponsored regulators. 
(c) 
Activity 
What organisations actually do can vary enormously. They could be manufacturing organisations, 
for example, or they could be a healthcare service. 
(d) 
Profit or non-profit orientation 
Some businesses exist to make a profit. Others, for example the army, are not profit orientated. 
(e) 
Legal status 
Organisations may be limited companies or partnerships. 
(f) 
Size 
The business may be a small family business or a multinational corporation. 
(g) 
Sources of finance 
Businesses can raise finance by borrowing from banks or government funding or issuing shares. 
(h) 
Technology 
Businesses have varying degrees of technology use. For example, computer firms will have high 
use of technology but a corner shop will have very low use. 
BPP Tutor Toolkit Copy

---