Final answer:
A key characteristic of an organization is that it has (a) a purpose which defines its goals and direction.
Step-by-step explanation:
A key characteristic of an organization is that it has a purpose. Indeed, every organization, whether it's a sole proprietorship, a public company, or any other form, is fundamentally created to fulfill a specific purpose or objective. This purpose defines the organization's direction and goals, and can encompass a wide range of activities including providing goods or services, making profits for shareholders, or achieving broader social impacts.
While having customers, generating revenue, and having stockholders or shareholders are also common characteristics of many organizations, they are not definitively what make an organization an organization. Shareholders refer to the people who own at least some shares of stock in a firm, and while they are an important part of many businesses, their existence is not a defining feature of all organizations. For instance, non-profit organizations may not have shareholders and yet they have a purpose which guides their operations.
Moreover, any entity, whether it has stockholders, bondholders, or is solely owned by an individual, operates with a central guiding purpose. This purpose is at the core of its strategic planning and operational execution, influencing decisions such as raising financial capital through methods like personal savings, angel investors, venture capital, issuing bonds, or stock.