Lesson 6: Forms of Business Organizations

• Two Types of Organizations

  • Profit Organization
  • Non-profit Organization
• Profit Organization


  Its goal is to make money by selling products and services; funds come from sales
• Non-profit Organization


  Prioritizes charitable work rather than sales; funds come from donations
• AHON Foundation is a non-profit organization founded by Sir Carr Benedict David during the COVID-19 pandemic era
• Forms of Business Organizations

  • Simple Business Organization
  • Functional Business Organization
  • Divisional Business Organization
  • Team Structures
  • Matrix Business Organization
  • Project Based Structure
  • Boundaryless Structure
  • Virtual Business Structure
• Simple Business Organization


  • Commonly used by small or starting businesses
  • The owner handles all or may employ a small number of workers
  • The owner oversees everything
• Functional Business Organization


  Used by big businesses or corporations; a company creates a department based on its functions or expertise
• Divisional Business Organization


  Interconnected sub-organization/subgroups on a bigger organization
• Team Structures


  Workers are divided into different teams or groups; similar to Divisional Business Organization
• Matrix Business Organization


  Employees report to multiple managers; allows for dynamic and flexible management of resources and projects
• Project Based Structure


  An organization creates a team only when there is a project; often involves outsourcing employees
• Boundaryless Structure


  Eliminates traditional barriers within and between organizations to foster flexibility and innovation
• Virtual Business Structure


  An organization operates without a central physical office; relies on digital technologies for collaboration