Readings

Question 1

What is a business?

Answer 1

Offers goods or a service in exchange for payment- expect to make an income from this. can be for-profit or not-for-profit entities.

Question 2

What is an organisation?

Answer 2

An organised group of people with a shared goal or objective. Able to achieve objectives that could not be done by one person or a group of people

Question 3

Although organisations can vary, what three things do they have in common?

Answer 3

people, objectives, structure.

Question 4

What are the three main ways to categorise a business?

Answer 4

size, ownership, industry sector

Question 5

Why do we not classify businesses by profit

Answer 5

would exclude Not-for-profits

Question 6

What are the two most common ways to classify a business?

Answer 6

number of employees and annual turnover

Question 7

How does the European Commission define a large enterprise?

Answer 7

250 employees or more, annual turnover over €50 million

Question 8

How does the European Commission define Medium-sized enterprises?

Answer 8

employ fewer than 250 employees, annual turnover over under €50 million

Question 9

How does the E.C define a small enterprise?

Answer 9

employ less than 50 , annual turnover less than €10 million

Question 10

How does the E.C define micro enterprises?

Answer 10

Employ less than 10 people, annual turnover under €2 million

Question 11

What are SME’s

Answer 11

Small and medium businesses are the collective of businesses with fewer than 250 employees

Question 12

In what ways are small and large businesses alike?

Answer 12

offer services/ goods that are in demand. need to be able to cover expenses and make a profit. Both need qualified and motivated staff.

Question 13

What are the 3 sectors of industry

Answer 13

Primary, secondary and tertiary

Question 14

What is the 4th sector?

Answer 14

an upcoming sector- made up of intellectual activities such as education

Question 15

What is the primary sector

Answer 15

extracting and harvesting natural resources, e.g mining, fishing and agriculture

Question 16

what is the secondary sector

Answer 16

The processing industry- takes resources from the primary sector and does more with them. e.g manufacturing, construction, processing foods

Question 17

what is the tertiary sector

Answer 17

provides services such as retail, financial services and entertainment

Question 18

What is a sole trader?

Answer 18

Run by and as an individual. keep all the businesses profits. Are personally responsible for any losses that the business makes. Sole traders can take on employees- the term implies that they own the business alone not that they work alone.

Question 19

what is a limited company?

Answer 19

An organisation set up by its owners to run their business. A limited company is a legal person- it has legal rights and obligations in itself, which are independent from the rights and obligations of its owners as individuals. A limited company can own property.
A limited company’s finances are separate from its owners. Any profit made after tax belongs to the company. The company can share its profits among all the owners.
Limited companies have members- the people who own the shares.

Question 20

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

Answer 20

Private- shares can only be brought with the approval of the current owner may be invited to invest
Public - PLC’s shares are traded in the stock market- anyone can buy them.

Question 21

What is a business partnership?

Answer 21

When a business’s ownership is shared by two or more people. Profits from a partnership are shared between the partners and then each partner pays tax on their share.

Question 22

What is the difference between a general and a limited partnership?

Answer 22

General partnerships- all partners are personally responsible for the business
Limited partnership- partners are not personally liable if the business incurs and debts.