Types of ownership Flashcards
Their roles . products and services that they offer to customers.
What do these travel and tourism organisations tend to do ?
Work together.
What does being part of the private sector mean ?
The businesses are not under government control but instead is owned by private individuals or companies.
What are private businesses aims and why ?
To make profit as they are commercial companies with staffed employees, expand their business, to have a good image / reputation.
What happens if private businesses fail to make profit ?
They will go out of business.
What are some examples of private businesses ?
STA Travel, LHR Airports, Longleat Safari Park , Premier Inn.
What are the sizes of private businesses ?
They can range in size from being small businesses to being huge multi - national cooporations.
What are the different types of private business ownership ?
individual or sole trader, private limited company, public limited company.
What is a sole trader ?
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.
Who is a private limited company owned by ?
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.
Who are shareholders ?
Shareholders are usually the company directors , they do not offer shares to the general public as they tend to be private.
What is the definition of limited liability ?
Shareholders are responsible for the debts of their company to the extent of the value of their shares.
What is the definition of a shareholder ?
Person, institution or company who owns at least one share of a company’s stock.
What is a difference between a public and private limited company in terms of the stock exchange?
Unlike a private company, public limited companies are listed on the stock exchange therefore their shares can be bought or sold publicly.
What do shareholders pay each year and what does it depend on ?
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.
What sector is a public limited company part of ?
Private sector.
What are the overall aims of a private business ?
To make a profit by increasing market share, diversify by offering new / range of products and services, improve public image.
What must a PLC have ?
At least two directors.
Where do the funds for public sector organisations come from ?
Central goverment, lottery funding, local goverments such as county councils.
What is the overall aim of all public sector organisations ?
Provide a service to the public.
What are the public organisations aims ?
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.
What is the DCMS and what does it do ?
(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.
What are some other local public sector organisations involved in travel and tourism ?
Local tourist information centres (usually run by local council), local visitor attractions, local transport organisations.
What is the DCMS also responsible for ?
For tourism in the UK, aiming to promote the UK as a destination whilst preserving the natural and man - made attractions.
Where do voluntary sector organisations recieve their funding from ?
Goverment grants, donations from the public including legacies, entry fees paid by visitors to their attractions and purchasing items from the giftshop, cafe etc.
What is the staffing situation with large voluntary organisations ?
Some staff are paid but mostly rely upon volunteers.
What are voluntary organisations aims ?
Educate
Preserve
Invest
Conserve
What is the staffing situation with small voluntary organisations ?
No paid staff, all are volunteers.
What are some examples of voluntary organisations ?
Charities e.g. the national trust, English heritage.
What are some examples of public organisations ?
Tourist information centres, local attractions (e.g. parks), public transport.
What are some examples of private sector organisations ?
Tour operators, transport hubs, visitor attractions, accommodation etc.
What are the 3 different types of ownership ?
Private, public, voluntary.
