Types of organisations

Question 1

Explain what multinational commercial companies are.

3 marks

Answer 1

For-profit organisations which sell goods, and span more than one country, such as Coke Cola.

• they span more than one country
• their aim is to make a profit
• example: Microsoft, Cola

Question 2

Explain what Utilities companies are.

3 marks

Answer 2

For-profit organisations which sell services such as water and electricity, an example being British gas.

• they provide services
  such as: transport, water, electricity and gas
• they’re aim is to make a profit
• examples: British gas, South west waters, the national grid

Question 3

Explain what is meant by a public-service organisation.

3 marks

Answer 3

A non-profit organisation that provides services to the public, such as schools, hospitals, and the army, which is funded by the government through taxes.

• funded by the government - through taxes
• the provide services to the public
  such as: Education, health services.
• their aim is to not make profit
• examples: Schools, Hospitals, Police, Fire services

Question 4

Explain what shops are.

3 marks

Answer 4

For-profit organisation which sells goods, and have many outlets throughout a country, such as boots and River Islands.

• they sell goods/products
• they have many outlets throughout the country
• their aim is to make a profit
• examples: HMVS, Boots, River Islands

Question 5

Explain what banks are.

3 marks

Answer 5

For-profit organisations which sells services to the community, such as Halifax and Santander.

• they sell a service
• their aim is to make a profit
• examples: HSBC, NatWest, Halifax, Santander, Barclays

Question 6

What is meant by ‘sole trader’?

1 mark

Answer 6

One person who works for themselves without any employees working for them.

Question 7

Define the term Micro Business.

1 mark

Answer 7

A business with less than 50 employees.

Question 8

Define the term Small Business.

1 mark

Answer 8

A business that has between 50 and 250 employees.

Question 9

Explain what an E-commerce is.

3 marks

Answer 9

A company that sells products and services online with an aim to make a profit, such as Amazon.

• they sell products and/or services online
• their aim is to make a profit
• examples: Amazon, EBay, Boohoo.com