MGC1010 Study Guide - Final Guide: Sole Proprietorship, Limited Liability, Competitive Advantage

• School: Monash University
• Department: Business - Management - MGC
• Course: MGC1010
• Professor: mulyadi robin

Document Summary

Organisation = a collection of people working together to achieve a common purpose. Organisations can perform more than what single individuals can do. Sole trader = an individual running a business. No separate legal existence from the individual and the business, therefore there is unlimited liability. Partnership = two or more individuals, corporations or other entities doing business together. No separate legal existence from the partners who make up the partnership. Companies = a legal entity separate from its owners and those who manage the affairs of the company (directors). Consists of all the background conditions in the external environment of an organisation and forms a general context of managerial decision making. Comprises of cultural, economic, legal-political and educational conditions. Consists of the people and groups with whom an organisation directly interacts. The specific environment is often described in terms of stakeholders; the individuals, groups and institutions who are affected in one way or another by the organisation"s performance.