105 Business Structure

Question 1

Private Sector

Answer 1

Business owned and run by private individuals
Aim focus on themselves, survival, market share and profits

Question 2

Public sector

Answer 2

Organisations owned (1) and ran by the government

Question 3

Sole traders

Answer 3

A private sector business owned and run by one individual
They have unlimited liability

Question 4

Partnership

Answer 4

A private sector business ran by 2-20 people. They have unlimited liability

Question 5

Unlimited liability

Answer 5

Where the owners become personally responsible of the business debts (1) and would have to sell possessions to collect debts

Question 6

Private limited company (Ltd)

Answer 6

A business owned by its shareholders, run by directors and liability of the shareholders is limited
Shakers only sold privately

Question 7

Public limited company (PLC)

Answer 7

A business owned by shareholders, ran by directors and with limited limited liability.
Shares sold publicly on stock exchange

Question 8

Limited liability

Answer 8

Investor/Owner seen as separate to the company. Personal assets not at risk to pay debts. Owners only liable to lose the amount of money invested in the business

Question 9

Social enterprises

Answer 9

Aim to solve problems that affect the communities they operate in, profits re invested to achieving their goals. No shareholders

Question 10

Charities

Answer 10

Non profit organisations that collect money and spend it on a good cause

Question 11

Stakeholder

Answer 11

Anyone with an interest in a business