1 - Types of Businesses Flashcards
Understand different types of businesses and their objectives
What does PLC stand for?
Public Limited Company
What is an example of a state / Goverment owned businesses ?
The NHS
Public Schools
Prisons
What is a Sole Trader ?
A business that is owned and run by a single individual
What is an Ltd?
Private Limited Company
What is the primary sector?
Primary sector produces the raw materials for industries e.g. Farm, coal mine and forestry.
What is the secondary sector?
Secondary sector is the manufacturing and assembly process. This involves converting raw materials into components e.g. Building houses, bridges and roads.
What is a Partnership ?
Two or more people trading together as an organisation
What is an example of a Sole trader?
Fish & Chip shop
Window Cleaner
Mechanic
Electrician
What is a business that is owned by one person who has employees ?
Sole Trader
What is a business that is shared between two or more people ?
Partnership
What is an example of a partnership ?
Warner Brothers
Ben and Jerry’s
etc.
What is the tertiary sector?
Tertiary sector refers to commercial services that support the production and distribution process e.g. Transport, teaching and health care.
What kind of liability does a PLC have?
Limited Liability
What kind of liability does an Ltd have?
Limited Liability
Give one key feature of an Ltd
Owned by Shareholders Run by board of directors Funded by retained profits and shares Limited Liability Invites people to purchase shares Financial information is hidden from the public
What is the aim of a charitable / no profitable organisation ?
To make as much profit so it can be givin to charities . It is mainly formed with volunteers , not getting paid.
What is the goal of a community interest company ?
To improve the local community . It is a non profitable organisation.
What is a business aim?
A summary of what the business wants to achieve in the future.
Is there liability for a charitable , governmental and community interests organisation ?
N ⭕️ , there is no one owner to set liability on
What is meant by the term ‘Recession’?
A period of economic decline where demand and output fall.
What is the private sector?
The private sector is usually composed of organisations that are privately owned and not apart of the government. These include corporations and partnerships (profit and non-profit). Examples include retail stores (Tesco) and local businesses.
What is meant by ‘economies of scale’?
Cost advantages gained when the size of a business increases. For example, suppliers may offer discounts to those placing larger orders.
What is meant by the term ‘break-even’?
When a businesses outputs are equal to the amount of inputs. The business has made neither a loss or a profit.
What is the public sector?
The public sector is usually composed of organisations owned and operated by the government. Examples of this can include the NHS and emergency services.