1.2 Business structure Quizs

Franchise

• A business model where a company (franchisor) allows individuals (franchisees) to operate a business using its brand and system.

• A type of business that operates independently without any brand affiliation.

• A legal agreement that prohibits the use of a company's brand.

• A method of selling products directly to consumers without intermediaries.

Unlimited Liability

• A legal obligation on the owner of a business to settle all debts incurred by the business, meaning personal assets can be used.

• A type of business structure where the owner's liability is limited to their investment in the business.

• A legal requirement for businesses to have insurance against potential losses.

• A financial term that refers to the ability to borrow money without restrictions.

Merit Goods

• Goods that are over-consumed in a free market.

• Goods or services that are deemed beneficial for individuals and society, which are often under-consumed if left to the free market.

• Goods that are only beneficial for the wealthy.

• Goods that are provided for free by the government.

Privatisation

• The transfer of ownership of a business, enterprise, or public service from the government to private individuals or organizations.

• The process of increasing government control over private enterprises.

• The act of selling government assets to foreign investors.

• The regulation of private businesses by the government.

Company

• A type of organization that operates for profit and has shareholders.

• A business organisation which has its own legal identity and which has limited liability.

• An informal group of individuals working together for a common goal.

• A non-profit organization that does not distribute its surplus funds to owners or shareholders.

Limited Liability

• A legal structure where a company's owners are not personally liable for the company's debts beyond their investment.

• A type of insurance that protects business owners from personal losses.

• A financial strategy to maximize profits by minimizing expenses.

• A legal requirement for all businesses to register with the government.

Shareholders

• Individuals or entities that own shares in a company and are entitled to a portion of the profits.

• People who manage the day-to-day operations of a company.

• Individuals who lend money to a company in exchange for interest.

• Entities that provide services to a company without owning any shares.

Nationalisation

• The process of transferring ownership of a business or public service from private to state ownership.

• The process of selling state-owned enterprises to private investors.

• The process of regulating private businesses by the government.

• The process of merging two or more companies into one.