Business Org 6.2 Lectures 7-8

Why do businesses exist?

• To raise taxes for the government

• To provide goods

• To provide goods and/or services

Tangible things include the service a doctor provides, lessons with your teacher and serving in a cafe.

• True

• False

The three sectors of the economy are (select one answer):

• Personal, business and government

• Primary, secondary, tertiary

• Private, public and third (or voluntary)

Which isn't part of the private sector? (select one answer)

• PLC's

• Sole traders and Partnerships

• Charities

• Franchises

What are the main aims of the public sector? (select all that apply)

• To provide high-quality products or services to the citizens

• To provide essential services such as healthcare and educations

• To provide services that aren't entirely profit driven

• All of the above

Sole traders are characterised by the following (select all that apply).

• All of the profits are kept by the owner

• The owner makes all decisions, including about holidays

• The sole trader isn't responsible for all debts

• The workload is the sole responsibility of the owner

Shared profits, shared workload, responsibility for all debts and between 2 and 20 owners are features of a:

• A franchise

• Partnership

• A PLC

• A public sector organisation

A private limited company (Ltd) is characterised by: (select all which apply)

• Limited liability for shareholders

• Final accounts need to be published

• The shareholders appoint the directors

• Private shareholders own the company

PLCs (select all which are correct)

• are usually large corporations

• sell their shares to the public

• make their financial records available to anyone

• require that their shareholders have full liability

Franchises (select the incorrect answer)

• require that the franchisee use their logo, colours and story layout

• are less risky to set up in business

• sell delicious food

• require that the franchisee pays a fee to the franchisor