Bst

Question 1

What is primary sector?

Answer 1

The primary sector of industry extracts and uses the natural resources of earth to produce raw materials used by other businesses.

Question 2

What is secondary sector?

Answer 2

The secondary sector of industry manufacturers goods using raw materials provided by the primary sector.

Question 3

What is tertiary Sector?

Answer 3

The tertiary sector of industry provides services to consumers and other sectors of Industy.

Question 4

What is horizontal integration?

Answer 4

Horizontal integration is when one business mergers with or takes over another one of same industry and the same stage of production

Question 5

What are the benefits of horizontal integration?

Answer 5

This reduces the number of competitors
There are opportunities for economics of scale.
Higger market share

Question 6

What is vertical integration?

Answer 6

Vertical integration is when a business mergers or takes over another one at the same industry but on a different stage of production this can be forward or backward

Question 7

What is benefits of forward vertical integration?

Answer 7

Assured outlet for its product
More profit
There is opportunity for economics of scale

Question 8

What is benefit of backward vertical integration?

Answer 8

Other costs can be controlled
More profit
Can stop production for other business
Assused supply for its important parts

Question 9

What is conglomerate integration?

Answer 9

Conglomerate integration is when a business take over or mergers with another one from a complete different industry.

Question 10

What are the benefits of conglomerate integration?

Answer 10

More than one activity in the business
Transfer of ideas

Question 11

What is sole trader?

Answer 11

Sole trader is a business owned by one person.

Question 12

What are the advantages of being a sole trader?

Answer 12

Independent
More profit
Connect to consumers
Complete security in business mates
Few legal regulations required

Question 13

What the disadvantages of being sole trader?

Answer 13

No one to discuss business Mattar with
No profit of limited liability
Less captain
If own is on leave the production stops

Question 14

Who all are advanced for sole trader?

Answer 14

People who are setting up a new business
Don’t need much profit to get the business going
Will deal mainly with public

Question 15

What is partnership?

Answer 15

Partnership is a form of business in which two or people agree to jointy to own

Question 16

What are the advantages of partnership?

Answer 16

More capital
Less responsibility
Profit or loss will be shared

Question 17

What are the disadvantages of partnership?

Answer 17

They don’t have limited liability
If one partner dies the partnership ends
If one person is ineffiect or dishonest the others have to go with loose
Decision and consulting takes time

Question 18

What are the setting sisituation when partnership suitable?

Answer 18

When partnership are very close.
When provisional body needs partners not a company
When partners wish to learn form business but avoid legal complications

Question 19

__________________ this type of partnership exists after a partner’s
Death.

Answer 19

Limited partnership

Question 20

What does a incorporate business mean?

Answer 20

A company exists separately from the owners and will continue to exists when one of owners dies.
A company can make contract or legal agreement
Company accounts are kept separate from owners accounts.

Question 21

What is private limited companies?

Answer 21

Private limited companies are business owned by shareholders but they cannot sell shares to public

Question 22

What are the advantages of private limited companies?

Answer 22

Shares can be sold to a large number of people
All shareholders have limited liability
The owners will be able to keep control of it as long as they don’t sell most share ro people

Question 23

What is the disadvantage of private limited company?

Answer 23

A lot of significant legal mater which have to be dealt before the company can form.
Accounts are less secret
Shares cannot be sold or transferred to someone else without the agreement of other shareholders.