BUSSPP 0020 Chapter Notes - Chapter 1: Opportunity Cost, Financial Statement, Economic Rent
11 Sep 2017
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Organizations, firms, and environments: organizations have four distinguishing features, 1. They are social inventions: consisting of people and other resources: 2. They have a more or less discernable external boundary: separates from them from everything else in the world and usually many internal boundaries: separate various units of the organization: 3. They have goals they attempt to accomplish: a. We assume that businesses have one goal (in economic courses): wealth maximization for their owners: 4. They have deliberately structure tasks: usually everyone in the organization does different things, and the allocation of tasks to people usually isn"t random: a. Firms have a legal existence and identity: 2. Firms have certain rights and obligations determined by legal and other bases: 3. Firms have some level of concern with the creation of economic wealth and to provide benefit to their owners: everything not within the firm"s boundary is in its environment, 1. The distinction may sound simple, but it isn"t: a.
