Which of the following best describes an organization?

The definition of an organization is best captured by the idea of a collective formed for a common purpose. This implies that an organization consists of individuals who come together to achieve specific goals or objectives. Whether in a business context, a non-profit, a community group, or any other type of collective, the essential characteristic is that the members share a common purpose and work collaboratively towards that aim.

This collective nature differentiates organizations from random groups of people without shared goals, which is why the first option does not hold true. The notion of a single entity operated for profit might apply to businesses, but it does not encompass the full range of organizations, which can include many forms of collaboration that may or may not focus on profit. Lastly, the idea of a business that does not interact with society overlooks the fundamental aspect of organizations engaging with external stakeholders, which is typically vital to their operations. Organizations, by their very nature, establish relationships and drive interactions within their respective environments. Hence, defining an organization as a collective formed for a common purpose accurately encapsulates the essence of what organizations are.