Community Interest Companies Overview

Community Interest Companies Overview

Assessment

Interactive Video

Business, Social Studies

10th - 12th Grade

Hard

Created by

Aiden Montgomery

FREE Resource

The video introduces Community Interest Companies (CICs) in the UK, explaining their purpose, characteristics, and benefits. CICs are designed to deliver community benefits and can be structured as companies limited by guarantee or shares. They feature an asset lock to ensure profits benefit the community. CICs offer a quicker setup than charities and allow founders to maintain strategic control. The video also outlines the steps to establish a CIC and compares them to charities, highlighting their growing popularity for social enterprises.

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10 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the primary purpose of a Community Interest Company (CIC)?

To deliver community benefits

To function as a government entity

To maximize profits for shareholders

To operate as a sole proprietorship

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is a unique feature of a CIC?

Asset lock

Unlimited liability

No legal structure

Mandatory charitable status

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How does a CIC differ from a charity in terms of creation?

CICs require government approval

Charities have no legal requirements

CICs are quicker to establish

CICs take longer to create

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a key advantage of a CIC over a charity regarding management?

CICs do not allow for strategic involvement

CICs allow founders to be involved in day-to-day operations

Charities offer more financial rewards

Charities have fewer compliance requirements

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What must be included in the initial documentation when setting up a CIC?

A list of shareholders

A government approval letter

A detailed business plan

The community and purpose it serves

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the CIC34 report?

A financial audit report

A review of the CIC's annual activities

A tax compliance document

A shareholder meeting summary

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What flexibility does a CIC offer in terms of funding?

It cannot accept any external funding

It requires funding from charities

It allows for private commercial funding

It only accepts government grants

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