types of business organisations Flashcards
1
Q
limited companies
A
- owned by shareholders
- run by directors
- limited liability
2
Q
private limited company
A
A private limited company sells shares privately to invited members.
3
Q
public limited company
A
A public limited company sells shares to the public and many are listed on the stock market.
4
Q
advantages of being a company
A
- limited liability
- raise more money
5
Q
disadvantages of being a company
A
- directors make the decisions
- threat of a takeover
6
Q
advantages of being a multinational
A
- cheaper production costs
- cheaper suppliers and workers
- avoid trade or tax barriers
- government grants
6
Q
multinational
A
A multinational is a company which has its headquarters in one country but has production facilities in other countries.
7
Q
disadvantages of being a multinational
A
- profits are not retained in host country
- often accused of exploiting the workforce
- cutting corners
7
Q
disadvantages of a franchise
A
- possible bad reputation
- profits are shared
- loss of control over quality
8
Q
franchise
A
A franchise is a joint venture between a franchisor and a franchisee.
9
Q
advantages of a franchise
A
- faster growth
- lower risk
- lower operating costs
- strength in numbers
10
Q
public sector funding
A
- Income tax
- National Insurance
- VAT
- Air passenger duty
- Fuel duty
11
Q
devolved matters
A
- health
- education
- police
- transport
12
Q
local government matters
A
- housing
- schools
- bin collection
- recycling
