Types of ownership

Question 1

What do these travel and tourism organisations tend to do ?

Answer 1

Work together.

Question 2

What does being part of the private sector mean ?

Answer 2

The businesses are not under government control but instead is owned by private individuals or companies.

Question 3

What are private businesses aims and why ?

Answer 3

To make profit as they are commercial companies with staffed employees, expand their business, to have a good image / reputation.

Question 4

What happens if private businesses fail to make profit ?

Answer 4

They will go out of business.

Question 5

What are some examples of private businesses ?

Answer 5

STA Travel, LHR Airports, Longleat Safari Park , Premier Inn.

Question 6

What are the sizes of private businesses ?

Answer 6

They can range in size from being small businesses to being huge multi - national cooporations.

Question 7

What are the different types of private business ownership ?

Answer 7

individual or sole trader, private limited company, public limited company.

Question 8

What is a sole trader ?

Answer 8

A sole trader is somebody who runs a business alone / as a self - employed individual. They don’t have limited liability so if they go bankrupt they have to pay off the debt themselves.

Question 9

Who is a private limited company owned by ?

Answer 9

Private limited companies are owned by shareholders , who own shares which can only be bought and sold with the permission of the company’s board of directors.

Question 10

Who are shareholders ?

Answer 10

Shareholders are usually the company directors , they do not offer shares to the general public as they tend to be private.

Question 11

What is the definition of limited liability ?

Answer 11

Shareholders are responsible for the debts of their company to the extent of the value of their shares.

Question 12

What is the definition of a shareholder ?

Answer 12

Person, institution or company who owns at least one share of a company’s stock.

Question 13

What is a difference between a public and private limited company in terms of the stock exchange?

Answer 13

Unlike a private company, public limited companies are listed on the stock exchange therefore their shares can be bought or sold publicly.

Question 14

What do shareholders pay each year and what does it depend on ?

Answer 14

A dividend (distribution of earnings) every year that the business makes a profit. And the size of the dividend depends on how much money the company has made and how many shares an individual owns.

Question 15

What sector is a public limited company part of ?

Answer 15

Private sector.

Question 16

What are the overall aims of a private business ?

Answer 16

To make a profit by increasing market share, diversify by offering new / range of products and services, improve public image.

Question 17

What must a PLC have ?

Answer 17

At least two directors.

Question 18

Where do the funds for public sector organisations come from ?

Answer 18

Central goverment, lottery funding, local goverments such as county councils.

Question 19

What is the overall aim of all public sector organisations ?

Answer 19

Provide a service to the public.

Question 20

What are the public organisations aims ?

Answer 20

Making enough money to continue to operate (breaking even), reinvesting profit back into the development of an area, allocated roles in order to provide a particular product / service to customer.

Question 21

What is the DCMS and what does it do ?

Answer 21

(Department for digital, culture, media and sport), it is a national public sector organisation and it is also responsible for the national tourist agency and funds public sector organisations.

Question 22

What are some other local public sector organisations involved in travel and tourism ?

Answer 22

Local tourist information centres (usually run by local council), local visitor attractions, local transport organisations.

Question 22

What is the DCMS also responsible for ?

Answer 22

For tourism in the UK, aiming to promote the UK as a destination whilst preserving the natural and man - made attractions.

Question 23

Where do voluntary sector organisations recieve their funding from ?

Answer 23

Goverment grants, donations from the public including legacies, entry fees paid by visitors to their attractions and purchasing items from the giftshop, cafe etc.

Question 24

What is the staffing situation with large voluntary organisations ?

Answer 24

Some staff are paid but mostly rely upon volunteers.

Question 25

What are voluntary organisations aims ?

Answer 25

Educate
Preserve
Invest
Conserve

Question 26

What is the staffing situation with small voluntary organisations ?

Answer 26

No paid staff, all are volunteers.

Question 27

What are some examples of voluntary organisations ?

Answer 27

Charities e.g. the national trust, English heritage.

Question 28

What are some examples of public organisations ?

Answer 28

Tourist information centres, local attractions (e.g. parks), public transport.

Question 29

What are some examples of private sector organisations ?

Answer 29

Tour operators, transport hubs, visitor attractions, accommodation etc.

Question 30

What are the 3 different types of ownership ?

Answer 30

Private, public, voluntary.