Chapter 4: Compliance in different sectors Flashcards
What is the main advantage and disadvantage of being a sole trader?
A: they are responsible for the running of the business and do not have to share profit or decision making?
D: they are solely liable for all debts the business incurs
What is the difference between a sole trader and a limited company?
A limited company is a legal entity in itself and the business keeps any profits it makes and is liable for any debt
What is the difference between and ltd and plc?
Ltd - shares are owned privately and not traded on stock exchange
Describe key differences between private and public sector.
Private sector exists to make a profit and are accountable to shareholders. They are responsible for their own internal regulation, running of the business and how much they pay employee though they do need to comply with external legislation and standards.
What are TSO’s?
Third sector organisations and not -for-profit organisations that exist to promote social environmental or cultural objectives. Any profit they make is used to support their goals
What are some example types of TSO’s?
Charities, voluntary and community organisations, co-operatives, trade unions and professional associations (e.g. CIPS)
Describe how a co-operative is run
Co-operatives are owned by their members who all share common goals/objectives. Everyone has the same rights and is involved in all decision making. Revenue generated goes back to members, local community or invested back into the cooperative
Explain the following for public sector:
Owned by Funded Shares? Float shares? Objective Internally administered by Employee benefits
Government Taxes and levies No No Provide general public with services Government Job security, pension
Explain the following for private sector:
Owned by Funded Shares? Float shares? Objective Internally administered by Employee benefits
Shareholders - private investors Investments/loans Yes Only PLC's Provide goods and services - make a profit Business - senior management Competitive salary, bonus, pensions
Explain the following for third sector:
Owned by Funded Shares? Float shares? Objective Internally administered by Employee benefits
Trustees Donations/levies No No Promote and support social, environmental, and cultural objectives Employees and volunteers Helping the cause
Describe the 3 main industrial sectors
Primary - acquisition or extraction of raw materials
Secondary - transforms raw material into finishes product
Tertiary - provides a service such as retails, finance, education
What the main objectives for the public sector
Monitor and improve services
Enhance services within budget
Work with community to keep stakeholders satisfied (info should be available to the public on plans for future, financial situation, personnel etc)
What CSR opportunities are there in public sector
Evaluate supports for sustainability
Initiate projects that give something back the community
Undertake business in an ethical way
Promote interests and employment of disadvantaged members of society
What are the four types of procurement procedures for tendering/making a contractual decision?
Open
Restricted
Competitive dialogue
Competitive procedure with negotiation
What is competitive dialogue Vs competitive with negotiation
Competitive dialogue shortlisted suppliers enter into a dialogue and are eliminated throughout the dialogue process based on pre determined criteria. Finally full details of the contract are issued and remaining suppliers invited to submit their bids.
Competitive with negotiation allows a certain amount of negotiation to take place with the winning bidder.
