Chapter 1

Question 1

Types of Businesses

Answer 1

Sole trader
Partnership
Limied liability partnerships
private limited company
public limited company
non for profit organisation

Question 2

pros of incorporation

Answer 2

limited amount of liability
business is a separate entity
enhancement of credibility
access to easier funding
easier to transfer ownership

Question 3

Cons of incorporation

Answer 3

complexity to set up
information filed on companies house is public
business finances are separate so harder to take out drawings

Question 4

What is intangibility

Answer 4

A service that doesnt provide a physical product

Question 5

What is inseparability

Answer 5

A service that can’t be separated from its consumption by the customer

Question 6

What is perishability

Answer 6

any unused service cannot be stored for future use

Question 7

What is variability

Answer 7

a service wil be tailored to the needs of an individual customer

Question 8

What is a risk appetite

Answer 8

level of risk they are prepared to accept to achieve their objectives