1. The Office in Relation to the Total Organization
Chapter 1-2

2. Understanding the Organization
An organization is built on information used by its employees
In order for employees to carry out their tasks they need to have an understanding about their company

3. Types of Organizations
Businesses are created to make a profit- financial gain
They do this by providing goods and or services that people want and or need.
All new businesses must file certain paperwork and legal documents with the government in order to open a business.

4. Sole Proprietorships A business owned by only one person.
Can have employees
Files their taxes under the owners Social Security number
If the business goes bankrupt the owners personal assets are at risk.

5. Partnership A business that has 2 or more owners.
Partners can be silent and only contribute financially
All owners may take an active role in the business decisions
If the business fails all owners personal assets are at risk.
One owner can leave the business the others have to buy their part

6. Limited Liability Company LLC
1 or more owners
Personal assets are protected if business fails
Still files taxes with owners social

7. Corporations Business that has multiple owners
Must secure a charter in the states they would like to inhabit.
The company sells shares which are partial ownerships of the company
Can be public or private
If public all financial records must be reported
Files taxes under own Tax ID number
If the company fails the owners personal assets are protected.

8. Professional Service Organizations
Doctors, Lawyers, accountants.
Can be either sole, partnership, LLC, or Corporation.
Members of these groups are financially responsible for the debts of the company and pay damages.
Provide a service

9. Not-for- Profit
These are businesses that provide services but there intention is not to make money
Examples: girl scouts, boy scouts, schools, hospitals.
Monies come from many sources such as: donations, government, participants.

10. Goals of Organizations
Service businesses such as government and not for profit seek to provide a service and not profit
Government
Roads, trash, police
Businesses seek a profit
Profits allow for expansion
New equipment
Better technology
More employees
Better products

11. Financial Documents
Public Businesses must publish their financial documents these are:
Income statement
Balance sheet

12. Income Statement
Shows the businesses operations for a certain period of time
Lists the revenues (profit) and Expenses (loss)
Businesses can have net income
If income is greater than expenses
Net Loss
If income is less than expenses

13. Balance Sheet A report that show the financial status of a company
Shows the company’s assets, liabilities, and owner’s equity.
Assets
Plant, money, inventory
Liabilities
Debts
Owner’s Equity
Owners money that is involved in the business

14. Structure of Organizations
Different levels of employees in each company
Each employee is responsible for some different task in the company
Each level has different authorities
Knowing the levels in your company will allow you to move through the channels and get your job done better

15. Board of Directors Owners elect the board
Board set up business policies and help the senior or top management in the running of the company
In the board there are committees
Financial
Operational
Research and Development

16. Senior management
Direct persons that receive policies set by the board
Chief Executive Officer CEO, Chief Operating Officer COO, Chief Financial Officer CFO.
These people have the most responsibility when things happen in the company

17. Middle management Direct the daily operations of the company
Not as many middle managers as there once was
Workers now take more responsibility for their own actions and tasks.

18. Department employees
Employees are organized into departments or areas of specialty to carry out a certain task.
Each department works on a particular task usually different from the rest of the departments.