Bussiness Studies

Question 0

What are the goals of the Charity organization?

Answer 0

Non profit making organization and to help others by being involved in community work etc…

Question 1

What are the three types of organizations?

Answer 1

Charities, Government / Public sector, Private sector.

Question 2

What are the goals of the government / public sector?

Answer 2

To look after the welfare of society by providing needed economic goods and services (roads, schools, law and order etc…).

Question 3

What are the goals of the private sector?

Answer 3

1) to make a profit
2) to survive
3) to grow/expand
4) to be well known
5) to provide a service or help society.

Question 4

What are the types of businesses in the private sector?

Answer 4

Sole trader, Partnership, Companies, Multinational.

Question 5

What is a sole trader business?

Answer 5

It is a business owned and controlled by one person.

Question 6

What are two advantages and disadvantages of a sole trader?

Answer 6

Advantages: a sole trader is his own boss, this type of business is easy to setup.

Disadvantages: has full responsibility for the business, may lose revenue if off sick.

Question 7

What is a partnership?

Answer 7

It is a legal agreement between 2 - 20 people to own, finance and run a business.

Question 8

What are two advantages and disadvantages in a partnership?

Answer 8

Advantages: easy to setup, more partners means more capital.

Disadvantages: partners can disagree, partners share profits.

Question 9

What is a company?

Answer 9

It is a business set up by a group of people with the aim of making a profit. It has to be registered and given a name.

Question 10

What are the owners called in a company?

Answer 10

Shareholders.

Question 11

What are dividends?

Answer 11

When a company makes profits, shareholders enjoy a share of the profits which is called dividends.

Question 12

What are the two types of companies and explain them?

Answer 12

Private: has between 2-50 shareholders (usually run by a family).

Public: minimum of two shareholders with no maximum.

Question 13

What is a multinational?

Answer 13

It has its headquarters in one country and sells its products in other countries.

Question 14

What are the benefits of multinationals?

Answer 14

They male use of labour in other countries.
They make use of natural resources.
They have the opportunity to have a global market.

Question 15

What are the disadvantages of multinationals?

Answer 15

Chemical multinationals often cause pollution.
They can often undercut local firms.
They take profits out of domestic economy and pay them to shareholders who live far away.

Question 16

What are the positive impacts of business activities?

Answer 16

It involves the creation of goods and services that benefit people.
Consumers enjoy higher living standards.
Its creates jobs and incomes for workers.
They pay taxes to the government.

Question 17

What are the negative impacts of business activity?

Answer 17

Water pollution eg: oil spills.
Air pollution eg: toxic waste from factories.
Destruction of the environment eg: deforestation for roads etc…
Global warming eg: burning fossil fuels.
Over fishing eg: depleting fish stocks.

Question 18

Who is a stakeholder?

Answer 18

It is someone who has an interest in the decisions taken by a business.

Question 19

What are the two types of stake holders?

Answer 19

Internal and external stake holders.

Question 20

Who are the internal stakeholders and give examples?

Answer 20

Those who are owners or work in the business.
Owners: they expect to earn profits and they like to see their business growing.
Workers: they want job security, promotions and good working conditions.

Question 21

Who are external stakeholders and give examples?

Answer 21

Customers
Suppliers
Government
Local community
Pressure groups