General Business Flashcards
Who are consumer co-operatives owned by?
Their customers
Who are workers co-operatives owned by?
They are owned and ran by their owners.
What do members of a co-operative do / gain?
They invest in the group in return for a share of the profits, they also have a say in how the organisation is run.
What are examples of ethical business principles?
Importing fair trade goods, refusing to trade with countries that abuse human rights.
What are the advantages to a franchise?
Franchisees will receive training, advice and support.
The Franchisor will receive a % of the profits made by the franchisee, and benefit from a. Bigger market share without the extra work.
What are the disadvantages to a franchise?
Franchisees often have a to pay a substantial fee to trade under the business’ name.
The franchisee also has limited freedom, they can only sell the franchisors products.
A badly run franchise may damage the franchisors reputation.
What sector are sole traders, partnerships, limited companies, cooperatives and franchises all in?
The private sector
Which sector are most U.K businesses in?
The private sector.
What sector are sport centres, libraries, jobcentres and state schools all part of?
The Public sector
Who runs public sector organisations?
The government or local authorities
How are public sector businesses different to private sector businesses?
They do not operate to make a profit
They are funded from taxes such as council tax, rather than shareholders
