understanding business

Question 1

sectors of economy

Answer 1

private sector
public sector
third sector

Question 2

private sector

Answer 2

organisations owned by private individuals that exist to make a profit

Question 3

public sector

Answer 3

services and agencies run by the government on our behalf

Question 4

third sector

Answer 4

non-profit making organisation that exists to support a cause/aim

Question 5

sole trader

Answer 5

a business owned and run by one person
owned by one individual
controlled by the private individual
financed by their own personal savings, or possibly a bank loan or grant

Question 6

partnership

Answer 6

a business owned and run by 2-20 people
owned by the 2-20 partners
controlled by the 2-20 partners
financed by the investment of each individual partner

Question 7

private limited company

Answer 7

a business owned by 1-50 private shareholders
owned by private shareholders- shares cannot be sold on the stock market
controlled by a board of directors who run the business on behalf of shareholders
financed by share equity invested by shareholders

Question 8

social enterprises

Answer 8

organisations that trade and earn income from business but use the profits to help their cause
ownership is typically structured similar to the private sector
controlled by sole trader/partners/board of directors
financed by grants, private investment and donations
have social aims which seek to improve society in some way.

Question 9

external factors

Answer 9

influences out with the control of the organisation which will affect how it operates (outside the business)

Question 10

political

Answer 10

changes in government policies, legislation or taxes

Question 11

economic

Answer 11

factors which encourage people to send or save their money (eg unemployment, recession)

Question 12

social

Answer 12

changes in demographics, characteristics of the population, culture and values
the demand of customers is constantly changing and will be affected by how society grows and develops over time

Question 13

technological

Answer 13

advancements in technology happening in a organisations industry
technology is changing all the time and its important that a business is aware in order to remain competitive

Question 14

environmental

Answer 14

pressure from the government/society to be more environmentally friendly and the influence of adverse weather

pressure from government/society

adverse weather

Question 15

competitive

Answer 15

the actions of your competitors that effect your business
all business face competition but its important to be ready to react to any decisions/actions they may take that are out with your control

Question 16

stakeholder

Answer 16

a person or group of people who have an interest in the success of an organisation