Module 4

Question 1

WHAT ARE THE THREE TYPES OF ECONOMIC BUSNESS SECTORS

Answer 1

PRIVATE SECTOR
PUBLIC
THIRD SECTOR

Question 2

WHAT ARE THE THREE TYPES OF INDUSTRIAL SECTOR

Answer 2

PRIMARY - RAW MATERIAL - EXTRACTION
SECONDARY - MANUFACTURING - TRANSFORMING
TERTIARY - FINANCIAL, TRANSPORT, RETAIL - SERVICES

Question 3

WHAT DEFINES PRIMARY INDUSTRIES

Answer 3

NO RAW MATERIALS
HIGH CAPEX PURCHASES
HIGH VALUE STOCK

INDEPENDANT DEMAND

Question 4

WHAT DEFINES SECONDARY INDUSTRIES

Answer 4

HANDLE RAW MATERIALS
CAPEX PURCHASES
REPEAT BUSINESS

DEPENDANT DEMAND

Question 5

WHAT DEFINES TERTIARY INDUSTRIES

Answer 5

BUYS FINISHED GOODS
HIGH PURCHASE COST >80% HIGH OVERHEADS
LARGE SUPPLIER BASE
DIRECT END-USER
LITTLE LEVERAGE
DEMAND STIMULATED THROGH ADVERTISING
ADD NO VALUE

Question 6

WHAT DEFINES A PUBLIC SECTOR ORGANISATION

Answer 6

THEY ARE OWNED BY THE GOVERNMENT
AIM TO PROVIDE A SERVICE
FINANCED THROUGH THE STATE - TAX PAYER
ACHIEVE DEFINED SERVICE LEVELS

Question 7

WHAT REGULATIONS IMPACT THE PUBLIC SECTOR?

Answer 7

PUBLIC CONTRACT REGULATIONS 2015
PUBLIC PROCUREMENT REGULATIONS 2016
LATE PAYMENT OF COMMERCIAL DEBTS REGULATIONS 2013
EQUALITY ACT 2010
PUBLIC SERVICES ACT 2012

UTILITIES CONTRACT REGULATIONS 2016
CONCESSIONS CONTRACT REGULATIONS 2016
LOCAL GOVERNMENT TRANSPARANCY CODE 2015
ENERGY EFFICIENCY DIRECTIVE ARTICLE 6
SMALL BUSINESS ENTERPRISE & EMPLOYMENT ACT 2015

Question 8

WHAT ARE THE 4 TYPES OF PUBLIC TENDER

Answer 8

OPEN
-OPEN TO ANY POTENTIAL BIDDER
RESTRICTED
-PRE-QUALIFIED SELECTED SUPPLIES BID FOR CONTRACT
COMPETITIVE DIALOGUE
-DIFFICULT TENDER WHERE SUPPLIERS HELP DEFINE SOLUTION
COMPETITIVE PROCEDURE WITH NEGOTIATION
-SUPPLIERS HELP DEFINE SPEC WHERE NO OFF SHELF IS AVAILABLE LIKE SOFTWARE SOLUTIONS

Question 9

WHO DECIDES WHAT VALUE FOR MONEY IS?

ANY HOW IS IT MONITORED?

Answer 9

THE NATIONAL AUDIT OFFICE HELP DEFINE IF PUBLIC SECTOR IS GIVING VALUE FOR MONEY TO PUBLIC

IT IS DEFINED BY MONITORING

• ECONOMY - MINIMISE COST WITHOUT OVERLY REDUCING QUALITY
• EFFICIENCY - RELATIONSHIP BETWEEN OUTPUT, SERVICES AND RESOURCES
• EFFECTIVENESS - EXTENT TO WHICH OBJECTIVES ARE ACHIEVED

Question 10

WHAT DEFINES A PRIVATE SECTOR BUSINESS

Answer 10

IS OWNED BY AND CONTROLLED BY INVESTORS
FUNDED BY INVESTMENT, REVENUE AND DEBT (LOANS)
AIMS TO MAKE PROFIT FOR STAKEHOLDERS

Question 11

WHAT BUINESS TYPES FALL INTO
UNINCORPORATED
INCORPORATED

Answer 11

UNINCORPORATED
SOLE TRADER
PARTNERSHIP

INCORPORATED
PRIVATE LIMITED COMPANY
PUBLIC LIMITED COMPANY

Question 12

WHAT ARE THE PROS/CONS OF SOLE TRADERS

Answer 12

PROS

• MAKE ALL DECISIONS AND DECIDE DIRECTION OF BUSINESS
• KEEPS ALL THE PROFITS
• LOW OVERHEADS
• NO CONFLICT WITH STAFF DECIDE WHO TO EMPLOY

CONS

• FULL EXPOSURE TO ALL BUSINESS DEBTS
• HARD TO GET LARGE LOANS FOR BUSINESS DEVELOPMENT
• NO ECONOMIES OF SCALE
• MINIMAL INPUT ON BUSINESS DECISIONS

Question 13

WHAT ARE THE PROS/CONS OF A PARTNERSHIP

Answer 13

PROS

• MEMBER OF PARTNERSHIP SHARE PROFITS
• SPLIT INVESTMENT INTO BUSINESS
• EASIER TO RAISE LOANS

CONS

• DECISIONS HAVE TO BE SHARED / DECIDED OVER
• PROFITS ARE SHARED
• ALL MEMBERS CARRY DEBT NOT LIMITED

Question 14

WHAT ARE THE PROS/CONS OF A LIMITED COMPANY

Answer 14

PROS

• AIM TO GIVE SHAREHOLDERS PROFIT DIVIDENDS
• PROTECTS OWNERS FROM PERSONAL LIABILITY COMPANY OWNS DEBT
• SHARES ARE STABLE CAPITAL ISNT AFFECTED BY TRADING
• DIRECTORS PROVIDE DIRECTION AND EXPERTISE

CONS

• EXPENSE AND REDTAPE
• SUBJECT TO REGULATION - PUBLIC DISCLOSE
• SHARE TRADING CAN RESULT IN UNWATED CHANGE OF OWNERSHIP

Question 15

WHAT ARE THE REGULATIONS AND BODIES PRIVATE COMPANIES HAVE TO ABIDE BY

Answer 15

INTERNATIONAL LABOUR ORGANISATION - ILO
INTERNATIONAL STANDARDS ORGANISATION - ISO

THE CONSUMER RIGHTS ACT - 2015
TRANSPORT DRIVING REGULATIONS

Question 16

WHAT IS THE DIFFERENCE BETWEEN PUBLIC AND PRIVATE COMPANIES IN TERMS OF

1) OBJECTIVES
2) RESPONSIBILITY
3) STAKEHOLDERS
4) ACTIVIES AND PROCESSES
5) LEGAL RESTRICTIONS
6) COMPETITION
7) VALUE FOR MONEY

Answer 16

1) Private Aims To Make A Profit Public To Provide A Service
2) Private Buyers Are Responsible To Directors And Investors Profits, Public Are Responsible To The Public.
3) Private Stakeholders Are More Limited, Everyone Can Be A Public Stakeholder
4) Private Aim To Ensure Profits Are Maintained And Improved By Their Own Processes, Public Follow Processes Defined To Ensure Public Get Value For Money.
5) Private Limited Legal Restrictions, Public Have Many
6) Private Very Strong Competition, Public Little To No Competition
7) Private Aim To Make Profit For Stakeholders - Public To Ensure Within Budgets And Services Maintained.

Question 17

WHAT DEFINES A THIRD SECTOR ORGANISATION

Answer 17

NOT FOR PROFIT
PROVIDE A SERVICE TO PUBLIC
MULTIPLE STAKEHOLDERS AND CUSTOMERS
AIM TO RAISE AWARENESS TO CAUSE OR ISSUE
WORK WITH COMMUNITY TO DELIVER INITIATIVES AND BENEFIT AREA
RECEIEVE DONATIONS AND SPONSORS FOR FUNDING

Question 18

WHO REGULATES THIRD SECTOR

Answer 18

THE CHARITIES COMMISSION

• REGISTERS CHARITIES
• DETECTS MISMANAGEMENT
• ENHANCES PUBLICS CONFIDENCE KNOWING CHARITY IS REGULATED