Buscar
Estás en modo de exploración. debe iniciar sesión para usar MEMORY

   Inicia sesión para empezar

level: Types of Business Organisations

Questions and Answers List

level questions: Types of Business Organisations

QuestionAnswer
what is a sole trader?business owned and run by one person
describe the ownership of a sole traderowned by one private individual
how are sole traders controlled?controlled by one private individual
how are sole traders financedpersonal savings bank loan/grant
name 3 advantages of a sole tradereasy to set up owner keeps all profit owner makes all decisions
name three disadvantages of being a sole traderunlimited liability difficult to raise finance workload can't be shared
what is unlimited liabilityif business goes into debt, individual owner is responsible for paying it back personal belongings could be taken in order to pay
what is a partnership?a business owned and run by 2-20 people
describe the ownership of a partnershipowned by 2-20 partners
describe how partnerships are controlledcontrolled by 2-20 partners
how are partnerships financed?by investment of each individual partner
by which document is a partnership business set up?deed of partnership partnership agreement
name three advantages of operating as a partnershipmore financed can be raised compared to sole trader workload can be shared partners bring expertise to business
name four disadvantages of operating as a partnershipunlimited liability profit is split possible disagreements actions of partners are legally binding
what is a private limited company? (Ltd)business owned by 1-50 private shareholders
describe the ownership of a private limited companyowned by private shareholders shares can't be sold on stock market
describe how private limited companies are controlledby board of directors
how are private limited companies financed?share equity invested by share holders
give three advantages of private limited companieslimited liability more finance compared to sole traders and partnerships easier to obtain additional finance
name three disadvantages of a private limited companyfinancial accounts must be published complicated and expensive set up compared to sole traders and partnerships profit is shared by paying dividends
what is the public sector?services and agencies run by the government on our behalf
describe the ownership of the public sectorowned by government on our behalf
how is public sector controlledby government at departments at uk, scottish and local levels
how is public sector financedtaxes paid by individuals + organisations
what are the three levels of government in the UKuk government scottish parliament local government
what services do the uk government runuk wide services and agencies eg. defence, immigration
what laws does uk government makelaws/legislation for all of uk to follow
what taxes does UK government collect?VAT, corporation tax
how does scottish parliament run services?use devolved powers to run services and agencies
what taxes does scottish parliament collect?tax such as income tax
what services do local government run?local services eg schools, parking and road repairs
what activities do local government run?local activities eg leisure centres, swimming pools, golf courses
what type of taxes do local government collect?taxes such as council tax + business rates
what is a public corporationbusiness organisation owned by government on our behalf
give an example of cutting costsnot funding a new police initiative
What is the third sector?non-profit making organisations that exist to support a cause/aim
describe the ownership of a charityno recognised owner
how are charities controlledboard of Trustees
how are charities financeddonations fundraising grants charity shop sales
who are charities run by?mostly volunteers + paid employees
give two advantages of charitiesexempt from paying certain taxes low wage costs due to mostly using volunteers
give two disadvantages of charitieshigh turnover of volunteers who may leave for paid work difficult to compete against other charities for donations
describe the ownership of clubs and associationsno recognised owner
how are clubs and associations controlledby elected committee
how are clubs and associations financedmembership fees subscriptions paid by members
who are clubs and associations run bylocally by volunteers
what is a social enterprise?organisation that trade and earn income and use profit to help their cause
what sector of economy are social enterprises part of?third sector
describe the ownership of social enterprisessimilar structured to private sector
how are social enterprises controlledsole trader partners board of director
how are social enterprises financedgrants private investment donation
how do social enterprises seek to improve society in some waythey have social aims
give three advantages of social enterprisessocial aims help attract customers more likely to receive grants due to positive impact on society easier to attract quality employees who want to support aim
give two disadvantages of social enterprisesunpredictable funding due to heavy reliance on grants difficult to compete against private sector businesses
give examples of scottish parliament run servicesnhs, police, transport, housing, agriculture