Business Organisations

Question 1

Two types of economics?

Answer 1

Macro & Micro

Question 2

What are economics?

Answer 2

Concerns the allocation of scarce resources

Question 3

What are microeconomics?

Answer 3

Deals with decisions at the level of the company based on the type of organisation and their market

Question 4

What are macro economics?

Answer 4

Considers the impact of governmental decisions on the economy

Question 5

What is a sole trader?

Answer 5

A single-person business where this person performs every role

Question 6

What is an organisation?

Answer 6

A group of people organised and managed in a way that aims to follow a corporate
goal or need.

Question 7

What are the three features of an organisation?

Answer 7

Goals, Structure, Systems & Procedures

Question 8

Organisations facilitate the sharing of what?

Answer 8

Ideas, experience, knowledge, skills, resources

Question 9

What two sectors can organisations be a part of?

Answer 9

Public & Private

Question 10

What two types of private sector organisation are there?

Answer 10

Profit Seeking & Not for Profit

Question 11

What types of profit seeking organisations are there?

Answer 11

Unincorporated & Incorporated

Question 12

What types of incorporated organisations are there?

Answer 12

Sole Trader & Partnership

Question 13

What types of incorporated organisations are there?

Answer 13

Private Limited Company (Ltd) and Public Limited Company (PLC)

Question 14

What types of public sector organisations are there?

Answer 14

State Owned Industry & Government Office

Question 15

What are the features of a private sector organisation?

Answer 15

Owned by investors, responsible to shareholders, can run for profit or not for profit

Question 16

What are the features of a public sector organisation?

Answer 16

Owned by the state, responsible to the government, usually run not for profit

Question 17

Not for profit organisation can also be known as what?

Answer 17

NGO - Non Governmental Organisation

Question 18

What is an NGO?

Answer 18

Non Governmental Organisation: private sector organisation that isn’t run for profit, instead focuses on other goals

Question 19

What is an incorporated organisation?

Answer 19

When the business owners and the business itself hold the same legal identity

Question 20

What is an incorporated organisation?

Answer 20

When the business owners and the business have separate legal identities

Question 21

What are the features of a private limited company?

Answer 21

Shares can’t be issues to the public
Owners retain a high degree of control
Small number of shareholders to report to
Tends to be smaller companies

Question 22

What are the features of a public limited company?

Answer 22

Shares can be issues to the public and traded on the stock exchange
Owners can lose overall control by selling shares
Large numbers of shareholders to report to
Additional regulations to adhere to
Usually larger companies that issues shares to fund business ventures

Question 23

What are another 2 types of organisation?

Answer 23

Mutual and co-operative

Question 24

What is a co-operative organisation?

Answer 24

Where the welfare of members is a key goal

Question 25

What is a mutual organisation?

Answer 25

Where members tend to be customers and tend to focus on financial products