Introduction To Business Business Sectors And Types Of Business Flashcards
Distinguish between a primary,secondary and tertiary sector organisation
Primary- makes direct use of natural resources
Secondary-role of manufacturing
Tertiary-service sector
Distinguish between private public and third sector organisations
Private sector is ran by individuals for profit (not state controlled)
Public sector government and government controlled enterprise like the NHS
Third sector charities and voluntary groups
Local markets
Targets customers within a radius around a physical location
National market
Sale of a product or service around the country
Global market
Goods and services traded worldwide
National business
Operates within the boarders of a country
Multinational business
Operates in multiple countries
Identify the three sectors of economic activity
Raw materials (primary)
Manufacturing (secondary)
Service industries
State an example of a business in each sector
Primary = farming Manufacturing = building Service = hairdresser
Advantage of being a soletrader
Can chose hours of work
Disadvantage of a soletrader
Unlimited liability
Explain why continuity is a disadvantage for soletrader
When a soletrader dies or retires the business is likely to end
Explain what is meant by a partnership
Two or more people owning a business working together
Disadvantage of partnerships
Potential disagreements
Advantage of partnerships
More skills and ideas in a business
Explain why financial privacy is an advantage for partnerships
Their finances cant be viewed on company house.other businesses cant see it
Explain what is meant by a limited liability partnership
The indictable of the partnership have limited liability this means the Individual partners are not liable for the debts of the entire limited liability partnership
Limited liability
Business owners debts are restricted to what they put into the business
Unlimited liability
The business owners is personally responsible for any losses the business makes
Private limited company
Has limited liability
LTD in name owned by shareholders
Explain why publishing company accounts ,at be a disadvantage for private limited companies
Must be register of company house
Explain why borrowing can be easier for private limited companies than sole traders and partnerships
Shares in the business can be sold to raise money
Identify one other advantage and one other disadvantage of operating as a private limited company
An advantage is limited liability
A disadvantage is legal set up costs are expensive
Explain what is meant by a public limited company
Managed by directors Owned by shareholders Can offer shares to public Listed on stock market More open and public than LTD
