business structure Flashcards
what is the private sector
the private sector included businesses that are set up by individuals or groups of individuals.
e.g. partnerships, sole traders, charities
what is the public sector
the public sector is essentially businesses activity that is owned / run by the government for the benefit of everyone.
e.g. hospitals, army, schools
what is unlimited liability
the owners of a business are responsible for all the debts of a business. personal belongings may need to be given up to pay the debts of the business
what is limited liability
owners of a business are not responsible for the debts of a business. personal belongings will not need to be given up to pay for the debts of a business. the owners however will lose the money they invested in the business if it fails
what is qualitive research
involves collection of data about attitudes, beliefs and intentions. Focus groups, participant observation and interviews are common methods used to collect qualitative data
what is quantitative research
Involves the collection of data that can be measured. This means the collection of statistical data such as sales figures and
market share. Surveys and the use of government publications/existing statistics are common methods of collecting quantitative research data
advantages of secondary research
It is inexpensive to collect and quick to obtain.
Enables cost-effective analysis of several data sources.
disadvantages of secondary research
Often out of date.
Might not be available.
Little control over quality.
Problems of interpretation.
advantages of primary research
The research carried out is only available
to that business – this will enable it to gain
market advantages over rival firms.
It is up to date information, thereby enabling better decision making.
It can be targeted for specific needs that the
business may have identified
disadvantages of primary research
Can be very expensive to collect – could
the money have been better utilised using
secondary research.
Can be very time consuming to collect so
that by the time it has been collected and
analysed the market may have changed.
Can have problems of bias
what is primary research
(field research) – collecting primary
data and information that does not already
exist. It is collected for a specific purpose. Most primary information is gathered through questionnaires, interviews, surveys, focus groups and consumer panels.
what is secondary research
(desk research) – identifies, collects
and collates information that is already in existence. This can be collected internally or externally. It may be existing business documents, official publications, yellow pages, industry magazines and online desk research
what are the aims if the private sector
survival
- profit maximisation
- maximizing growth
- gaining market share
- maximising sales revenue
- maximising shareholder value
- diversifying into new
products/new markets - social aims
- ethical aims
- improving reputation
- improved quality
- environmental
- increased efficiency
- competitiveness
what are the public sector aims
provide a universal service to all UK
households wherever they are located
provide a service that the private sector may
not be willing to provide as it may not be
profitable to do so
to make a trading surplus if possible
provision of merit goods to raise society’s
standard of living
to ensure effective provision of public goods
who are the stake holders of a business
owner / shareholder
managers
employees
customers
suppliers
competition
local community
trade unitons
