Section 1 - 1.2 Types Of Organizations

Question 1

Charities

Answer 1

Are non-profit social enterprises that provide voluntary support for good causes, such as protection for children, animals and the natural environment

Question 2

Cooperatives

Answer 2

Are for profit social enterprises set up, owned and run by their members , who might be employees and/or customers

Question 3

A company / corporation

Answer 3

Refers to a business that is owned by share holders. It has been issued a certificate of incorporation, giving it separate legal identity from its owners

Question 4

Deeds of partnership

Answer 4

Is the legal contract signed by the owners of a partnership, the formal deeds specify the name and responsibilities of each partner and their share of any profits or losses

Question 5

Incorporation

Answer 5

Means that there is a legal difference between the owners of a company and the business itself. This ensures that the owners are protected by limited liability

Question 6

An initial public offering (IPO)

Answer 6

Occurs when a business sells all or pert of its business to shareholders on a stock exchange for the first time

Question 7

Limited liability

Answer 7

Is a restriction on the amount of money that owners can lose if their business goes bankrupt i.e. shareholders cannot lose more that thy invested in the company

Question 8

Micro finance

Answer 8

Is a type of financial service aimed at entrepreneurs of small businesses, especially females and those of low incomes

Question 9

Non-government organization (NGO)

Answer 9

Are a private sector not -for-profit social enterprises that operate for the benefit of others rather than primarily aiming for profit e.g Oxfam and friends of the earth

Question 10

Partnerships

Answer 10

are a type of private sector business owned by 2-20 people know as partners. They share responsibilities and burdens of running and owning the business

Question 11

Private limited company

Answer 11

Is a business owned by share holders with limited liability but whose shares cannot be bought by or sold to the general public

Question 12

The private sector

Answer 12

Is the part of the economy run by private individuals and businesses, rather than by the government e.g. sole traders, partnerships, companies and cooperatives

Question 13

A public limited company

Answer 13

Is an incorporated business that allows the general public to by an sell shares in the company via stock exchange. All shareholders enjoy limited liability

Question 14

Public-private partnerships

Answer 14

Occur when the government works together with the private sector to jointly provide certain goods or services

Question 15

The public sector

Answer 15

Is the part of the economy controlled by the government. Examples include state heath and education services, the emergency services and national defense

Question 16

A sole trader

Answer 16

Is a self-employed person who runs and controls the business and is the sole person help responsible for its success (profits) or failure (unlimited liability)

Question 17

Social enterprises

Answer 17

Are a revenue-generated business with social objectives at the core of their operations. They can be for-profit or non-profit businesses, but all profit or surpluses are reinvested for that social purpose rather than being distributed to shareholders and owners

Question 18

State-owned enterprises

Answer 18

Are organizations wholly owned by the government

Question 19

A stock exchange

Answer 19

Is a market place for trading stocks and shares of public limited companies

Question 20

Unlimited liability

Answer 20

Is a feature of sole traders and ordinary partnerships who a legally liable for all monies owned to their creditors, even if this means that they have to sell their personal possessions to pay for their debts