L4M1 L04

Question 1

What is a sector?

Answer 1

A way of classifying organisations according to the way they are funded, their obectives and products or services they are involved with.

Question 2

There are three economic sectors:

Answer 2

1. Public sector
2. Private sector
3. Third sector Organisations (TSO)

Question 3

Give Examples of Public sector services

Answer 3

1. Universal healthcare-doctors, surgeries, hospitals
2. Education- schools, colleges
3. Military- army, airforce, navy
4. Emergency services- police, ambulance, fire service

Question 4

How does a Public sector funded?

Answer 4

It is funded by the government through taxation. This is collected from individuals and corporate entities.

Question 5

Name different taxes which are available?

Answer 5

Levies on buying and owning property- stamp duty, property rates

Taxes on vehicles- vehicles excise duty

Taxes taken from employees salaries- income tax

Taxes on business profits- corporation tax

Commodity taxes on fuel, alcohol, tobacco and sugar

Question 6

Describe the services provided by the public sector in your country?

Answer 6

Healthcare
Education
Military
Emergency services

Question 7

Name the stakeholders in the public sector

Answer 7

General public

Civil society

Businesses

Public sector

Question 8

Who owns and fund private sector Organisations?

Answer 8

They are owned and funded by individuals or enterprises. They range in size from small one person business all the way through to giant multi- nationals

Question 9

What is one shared objective of the private sector?

Answer 9

To make profit

Question 10

Private sector Organisations can take different forms:

Answer 10

Sole trader
Partnership
Private limited company (Ltd)
Public limited company (Plc)

Question 11

What is the difference between a private limited company and a public limited company?

Answer 11

The shares of a private limited company belong to the owners and cannot be bought and sold on the stock exchange.

The shares of a public limited company are traded on the stock exchange and belong to investors.

Question 12

Third sector Organisations

Answer 12

Exist to support and promote social, environmental or cultural objectives

They do not aim to make a profit

Any profits(surpluses) they may make are used to support their goals

Examples of TSOs include charities, voluntary and community organisations, co-operatives, trade unions, proffesional associations eg CIPS

Question 13

Third sector is owned by

Answer 13

Trustees

Question 14

There are 3 industrial sectors

Answer 14

Primary
Secondary
Tertiary

Question 15

What are the 4 types of procedures used in the public sector?

Answer 15

Open
Restricted
Competitive dialogue
Competitive procedure with negotiation

Question 16

Describe the role and powers of the charity commission?

Answer 16

Role
1. Protectiong charities from abuse ir mismanagement

2. Enabling trustees to run their charities effectively
3. Encouraging greater transparency and accountability by charities
4. Operating as an efficient, expert regulator with sustainable funding

If a charity acts in an unethical way. It can

1. Restrict the operations of the charity
2. Appoint new trustees
3. Suspend a trustee
4. Appoint a new manager
5. Freeze the bank account

Question 17

Explain how you would calculate the gross and net profit if a business?

Answer 17

Gross profit=Turn over - Cost of sales

Net profit=Gross profit - Expenses

Question 18

What is the difference between economic and industrial classifications?

Answer 18

Economic classification relates to the way an organisation is funded.
The industrial classification relates to what area of industry i.e what industrial sector, the organisation works in.