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Class : 11
Unit : Economics

What is Organization? Explain its features.

Ans : Organization is that factor of production which organizes land, labor and capital to produce goods and services. The organization brings all these factor of production together at a place, these factor of production together at a place, combines them in proportion and utilizes them together in the process of production of goods and services. Organization may be of different types such as sole trading, joint stock company etc. Features of an organization a) Group of persons:- Organization is the group of persons contributing their efforts towards certain goal. Organization begins where people combine their effort for some common purpose. b) Profit motive:- The objective of the organization is to earn profit. Profit is essential for the survival as well as expansion of business. The performance of the organization is evaluated in terms of profit earning capacity. c) Innovation:- Another important feature of organization is innovation. Innovation means introduction of new method production, discovery of new raw material, introduction of new commodity. d) Division of work:- The basic of organization is division of work. Under division of work, the entire work of business is divided into many departments and every department is sub-divided into sub-work. e) Risk taking and uncertainty bearing:- There is always uncertain risk associated in an organization. This is because of uncertain future such as natural calamities, change in government policy, change in fashion etc. All such risk are burned by organization.
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