Business structure

Question 1

What is a social enterprise?

Answer 1

Business with a social/environmental purpose.

Question 2

Types of non-profits

Answer 2

1.Charities
2.Co-operatives
3.Social enterprise

Question 3

Disadvantages of PLC (public)

Answer 3

1.More legal requirements
2.Lose control

Question 4

Benefits of PLC (public)

Answer 4

1.Offer shares to public
2.Recive investment easier

Question 5

Disadvantages of LTD (private)

Answer 5

1.Profits shared
2.less control

Question 6

Benefits of LTD (private)

Answer 6

1.Limited liability
2.more tax efficient

Question 7

What is a limited company?

Answer 7

A company that has investment through shareholders.

Question 8

Disadvantages of partnerships.

Answer 8

1.Unlimited liability
2.Conflicts between partners
3.Profits shared

Question 9

Benefits of a partnership.

Answer 9

1.More experties
2.Teamwork
3.Low start up cost

Question 10

What is a deed of agreement?

Answer 10

A legal document that confirms agreement between parties in things like profit share, voting power, decision making etc.

Question 11

What is a partnership?

Answer 11

It is a business owned by 2 or more people.

Question 12

Disadvantages of sole trader

Answer 12

1.Higher risk- loose more
2.Unlimited liability
3.Longer hours
4.If sick business can’t run that day

Question 13

Advantages of a sole trader.

Answer 13

1.Easy to set up
2.More freedom it’s their decisions
3.Keep all the profits

Question 14

What is a sole trader?

Answer 14

A business ran by only one person who is fully liable for the whole business.

Question 15

Aims and objectives of private goods?

Answer 15

1.Make profit
2.Increase shareholder value
3.Survival
4.Increase maket share
5.Improve ethics

Question 16

Aids and objectives of public goods?

Answer 16

1.Provide services to everyone
2.Provide goods ppl wouldn’t be able to pay for
3.Provide goods that are difficult to charge. E.g. streetlights
4.Raise standard of living

Question 17

Why are public goods used?

Answer 17

To create fair and just society or for economic efficiency.

Question 18

What is the point of merit goods

Answer 18

The market would under consume if it was left to just the market and it has positive externalities.

Question 19

What is a merit good?

Answer 19

A hood provided by public and private goods. E.g. health and education

Question 20

What is a private sector?

Answer 20

A business privately owned by indivuals and organisations.