Different Forms of Business

Question 1

What are public sector organisations?

Answer 1

Owned by the government and run by them

Question 2

What do public sector organisations aim to provide?

Answer 2

Services to the public than rather make a profit

Question 3

What is an example of public sector organisations?

Answer 3

NHS

Question 4

What are private sector organisations?

Answer 4

Owned by and run by private individuals

Question 5

What is an example of a private sector organisation that aim to make a profit?

Answer 5

Charities

Question 6

What are social enterprises?

Answer 6

Normal businesses with a social objective.

Question 7

What are a social enterprise’s profits used to pay for?

Answer 7

Its social activities

Question 8

What are mutual organisations?

Answer 8

Like building societies aim to offer the best value on products and services

Question 9

What are a mutual organisation profits used to pay for?

Answer 9

Profits are reinvested into the business in order to reduce prices

Question 10

What does unlimited liability mean?

Answer 10

That any business debts become the personal debts of the owner

Question 11

What is an example of a business with unlimited liability?

Answer 11

Sole traders

Question 12

Why can unlimited liability be bad?

Answer 12

Huge risk

Question 13

What is limited liability?

Answer 13

That the owners aren’t personally responsible for any debts of the business

Question 14

Do shareholders have limited or unlimited liabilty?

Answer 14

Limited liability

Question 15

What are 2 examples of businesses that have limited liability?

Answer 15

Private and public limited companies

Question 16

What is a sole trader??

Answer 16

An individual trading in his or her own name

Question 17

What is the main feature why people become sole traders?

Answer 17

They have full responsibility of finances and meeting costs and requirements

Question 18

What does Capital Requirement mean?

Answer 18

Money invested to set up a business or fund growth

Question 19

What are 2 advantages of being a sole trader?

Answer 19

Freedom
Profit

Question 20

What are 2 disadvantages of being a sole trader?

Answer 20

Risk
Unlimited liability

Question 21

How are public sector organisations funded??

Answer 21

By UK tax system

Question 22

What is A LTD?

Answer 22

Private limited company

Question 23

What is a PLC?

Answer 23

Public limited company

Question 24

What liability do PLCs and LTDs have?

Answer 24

Limited

Question 25

Who own PLCs and LTDs?

Answer 25

Shareholders

Question 26

How is the capital value shared out?

Answer 26

Shares

Question 27

Who can sell shares to the public?

Answer 27

PLCs

Question 28

Who has their shares not on stock exchange?

Answer 28

LTDs

Question 29

How do shareholders share their shares in a LTD?

Answer 29

With agreement of the other shareholders

Question 30

What do PLCs need in share capital?

Answer 30

Over 50k

Question 31

What is ordinary share capital?

Answer 31

Money raised by selling shares

Question 32

Is OSC used for short or long term investment?

Answer 32

Long-term investment

Question 33

What are shareholders paid in return of their investment?

Answer 33

Dividends

Question 34

What are dividends?

Answer 34

A proportion of the profits earned by the company earned by the company which are split and paid out to the shareholders.

Question 35

What is market capitalisation?

Answer 35

The total value of all the ordinary shares issued by a company

Question 36

How do you calculate market capitalisation?

Answer 36

Number of issued shares x current share price