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Hi everyone!
I want to ask a question which confused me this afternoon.
What is the difference between an organisation and a company?
Which is contained in which?
I would appreciate it if you could give me an answer!First what do you consider as organization? By that did you mean a large group of companies or a single company which has branches in many countries ?
Thereafter, The main diferent is that the company has a single perpose. To deliver something specificaly. Like McDonalds. Has made a burgers. The organisation from the other hand has many perposes. Is a signle company divided in many other companies with diferent perpose. Like Google. Provides a serching machine. and has a many other subsitiary which provide busines solutions through tools , TV stremings, Advertisments etc.
The question would may be, how can i treat a company and how can i treat the organisation. the organisation has more complex approached through audit than the company.
Organisation:
“An organisation is: ‘a social arrangement which pursues collective goals, which controls its own performance and which has a boundary separating it from its environment’.Here are some examples of organisations.
– A multinational car manufacturer (eg Ford)
– A local authority
– An accountancy firm (eg Ernst & Young)
– A trade union (eg Unison)
– A charity (eg Oxfam)
– An army”The above is quoted from BPP Interactive Text, Paper FAB/F1 (For exams from 1 September 2015 to 31 August 2016), page 4.
Company:
“For the purposes of this Study Text, a company is an entity registered as such under the Companies Act 2006.
The key feature of a company is that it has a legal personality (existence) distinct from its members and directors.”The above is quoted from BPP Study Text, Paper F4/Corporate and Business Law(English) ( Study Text for exams from 1 September 2015 to 31 August 2016), page 181.
As you can see the an organization might be a company, but a company is surely an organization.
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