Introduction To Business

Question 1

Primary sector

Answer 1

Business extracts raw materials e.g. agriculture, mining, fishing

Question 2

Secondary sector

Answer 2

Business makes products out of raw materials e.g. car manufacturer

Question 3

Tertiary sector

Answer 3

Business offers services e.g. hairdresser

Question 4

Public sector

Answer 4

Organisation run by government e.g police

Question 5

Private sector

Answer 5

Organisation run by private individuals e.g. Tesco

Question 6

Third sector

Answer 6

Organisation that are neither public or private e.g. charities, religious groups

Question 7

National business

Answer 7

Operates in one country

Question 8

Multinational

Answer 8

Operates in more than one country

Question 9

Unlimited liability

Answer 9

Owners are personally responsible for any debts of the business

Question 10

Limited liability

Answer 10

Owner wont personally be responsible for the debts

Question 11

Private limited companies (Ltds)

Answer 11

can sell shares in the business but only by private agreement

Question 12

Public limited companies PLC

Answer 12

Sells shares to the public through stock exchange

Question 13

Franchise

Answer 13

when business allows other businesses to use its branding + sell products

Question 14

Difference between franchisor and franchisee

Answer 14

Franchisor -original business
Franchisee - buys the rights to use a franchisors business model

Question 15

Cooperatives

Answer 15

Business that is owned and run by its members

Question 16

Stakeholders examples

Answer 16

Employee
Customer
Investor

Question 17

Joint Venture

Answer 17

When 2 businesses work together on a project for a period of time

Question 18

Strategic alliance

Answer 18

When two businesses co-operate but they are less involved, e.g. they may share resources such as technology