Business Strucutre

Question 1

private sector

Answer 1

Businesses owned and run by private individuals. Aims and objectives may include survival, market share, profit maximisation etc

Question 2

public sector

Answer 2

Organisations owned and run/funded/controlled by the government (local and national).

Question 3

sole trader?

Answer 3

A private sector business owned and run by one individual (may employ people).They have unlimited liability.

Question 4

partnerships

Answer 4

A private sector business owned and run by 2-20 people. They have unlimited liability.

Question 5

unlimited liability

Answer 5

Where the owners become personally responsible for the debts of the business. Individuals may be forced to sell personal possessions or use personal savings to meet such debts.

Question 6

LTD

Answer 6

A business that is owned by its shareholders, run by directors, has limited liability
& shares can only be sold privately e.g. to family and friends.

Question 7

PLC

Answer 7

A business that is owned by its shareholders, run by directors and has limited liability.
Shares sold publicly on the stock exchange.

Question 8

limited liability

Answer 8

The investor/owner is seen as separate to the company. Personal assets are not at risk to pay debts. Owners are only liable to lose the amount of money invested in the business.

Question 9

social enterprises

Answer 9

Aim to solve problems and improve communities they operate in; they do not exist solely to make profits.
Profits are usually reinvested towards achieving their social ethical goals. They do not have shareholders.

Question 10

charities

Answer 10

A non-profit-making organisation established with the aim of collecting money from individuals and spending it on a cause, which is usually specified in its title.

Question 11

stakeholder

Answer 11

Anyone with an interest in a business. Stakeholders are individuals, groups or organisations that are affected by the activity of the business.