Business - Types of Enterprise

Question 1

What is financial enterprise?

Answer 1

Is set up to make a profit by selling a product or service

Question 2

Three types of enterprises

Answer 2

Local organisations such as Baker, Butcher , hairdresser or local shop these organisations operate in a specific local area

National organisations such as Woodies, O’Neills, Supervalu, Centra these organisations operate or have branches all over Ireland

Global organisations such as McDonald’s, Smith’s and pennies, these are very large and have operations all over the world

Question 3

The role of financial enterprises in society

Answer 3

provides goods and services

Provides employment

Boosts economic growth

Question 4

Definition of not for profit enterprises

Answer 4

These include charities and voluntary organisations that provide a range of services and benefits to the community an example of this would be DSPCA

Question 5

The definition of local enterprise offices

Answer 5

31 local enterprise offices across the country of a range of support and services to people interested in starting up a new business

Question 6

What do enterprise Ireland do?

Answer 6

they give financial support for start-up and expecting enterprises

Research and development to help Irish enterprises become more innovative and competitive in international markets

They export assistance, including introductions to overseas customers and information about selling an overseas markets

Question 7

definition of a social enterprise

Answer 7

A social enterprise is one that puts people and community out of private and personal gain

Question 8

An example of a social enterprise

Answer 8

social entrepreneurs Ireland SEI

SEI is a nonprofit organisation that helps social and entrepreneurs provide financial and practical support

Question 9

The role of social enterprises in society

Answer 9

provide services

Create and support employment

Provides finance for others

Question 10

Definition of a cultural enterprise

Answer 10

A cultural enterprise provides local or national consumers with access to the arts and cultural activities and events in the community

Question 11

The role of cultural enterprises in society

Answer 11

Promote art and culture

Create employment

Support for the local economy

Question 12

Number 1 example of a cultural enterprise

Answer 12

Culture Ireland, a division of the department of culture, heritage and the Gaeltacht, is responsible for promoting Irish arts worldwide

Question 13

Number two example of a cultural enterprise

Answer 13

The arts Council of Ireland is a government organisation with responsibility for developing arts

Question 14

What is a soul trader?

Answer 14

The sole trader owns and runs their own business. The sole trader is the one who makes all decisions and pries the money in their business. they take all the risk and get all the reward.

Question 15

Definition of unlimited liability

Answer 15

Can lose your own property to pay debts

Question 16

partnership definition

Answer 16

A partnership is a business where between two and 20 people come together to set up and share control of the business. The owners have shared unlimited liability.

Question 17

definition of capital

Answer 17

Big amount of money usually invested in the business

Question 18

Definition of liability

Answer 18

Financial responsibility/any costs that the business owes

Question 19

The four steps in becoming a soul trader

Answer 19

Decide what type of business you want to go into.

Find a suitable premises.

Register your business unless you want to use your own name and can begin trading immediately.

Apply for a license if you need one

Question 20

Unlimited liability distinction answer

Answer 20

The sole trader is liable for old business steps. This can include personal and business assets.

Question 21

Definition of dividend

Answer 21

A share of the profit given to shareholders as a return on investment

Question 22

Definition of limited liability

Answer 22

You only lose what you put into the business

Question 23

definition of a partnership deed

Answer 23

I said, rules and responsibilities for the company I agreed and written down in a partnership deed

Question 24

five things that will be included in the deed of a partnership

Answer 24

How profits are to be shared

Will be provided,

Duties and tasks of each person within the partnership

Rules for new partners.

What happens if the business closes down or someone leaves?

Question 25

4 advantages of a partnership

Answer 25

easy to set up

Extra money access in comparison to soul trader

More expertise to make decisions

Financial information is confidential

Question 26

4 disadvantages of partnership

Answer 26

Unlimited liability.

Profits are shared rather than kept to one individual like soul trader

The decision-making can be slow all partners have to be consulted

When a partner leaves, a new deed has to be drawn up no continuity of existence

Question 27

definition of private limited companies

Answer 27

Formed in between one and 149 people put together money to start a new business. The people who put money in our cult shareholders.

Question 28

Do private limited companies have limited liability?

Answer 28

Yes, private limited companies have limited liability

Question 29

Advantages of private limited companies

Answer 29

private limited companies have limited liability which means you only lose what you invest into the business

They can raise money by selling shares

When a shareholder dies, the business keeps going

Question 30

disadvantages of private limited companies or PLCs

Answer 30

Profits are to be shared

More expensive to set up

Many legal requirements/documents to fill-in

The original founders can lose control if bought out

Question 31

three examples of a public limited company

Answer 31

sky
Tesco
Power paddy

Question 32

definition of state owned companies

Answer 32

Formed by the dáil and owned by the state with a board of directors appointed to run them

Question 33

privatisation definition

Answer 33

When a government sells a state own company, it is called privatisation

Question 34

Nationalisation definition

Answer 34

If the government takes over company, it is called nationalisation

Question 35

advantages of state owned companies

Answer 35

Lots of jobs are created

Provides essential services

Income for state

Control over natural resources