What Is Business? Flashcards
Business
Any organisation that makes goods or provides services
Goods
Physical or tangible products
Services
Intangible products
Suppliers
Firms selling products to other businesses and to customers
Consumer
Individual who uses the product
What is a sole trader and what are the advantages and disadvantages?
Individual owning a business
-they have unlimited liability
-limited liability
-limited skills/knowledge
+quick to set up
+easy to set up
+individual gets to make all decisions
What is a partnership and what are the advantages and disadvantages?
Started and owned by more than one person
-have to share profit
-may have arguments
-unlimited liability
+may have more personal finance
+more knowledge and skills
What is a private limited company and what are the advantages and disadvantages?
(Ltd) company which can only sell shares to friends and family
-can’t sell shares on the stock market
-more difficult to set up
-has to consider shareholder opinions
+can sell shares to friends and family
+limited liability
What is a public limited company and what are the advantages and disadvantages?
(Plc) company which can sell shares on the stock market
-more difficult to set up
-has to consider shareholder opinions
+can sell shares on the stock market
+limited liability
What is a social enterprise and what are the advantages and disadvantages?
Business which prioritises people ahead of shareholder gain (eg charities)
-may not be profitable
-small profit
-may be controversial
+helps people and communities
+helps the world
What are the types of sectors?
•public
•private
•voluntary
Public sector
Owned and run by the government
Private sector
Owned by private individuals
Voluntary sector
Includes charities and societies to help people
Privatisation
A business going from the public sector to the private sector (eg energy)
