Font size
WorksheetsBusiness structure As Cambridge
Total questions: 19
Worksheet time: 14mins
What best describes economic sectors?
An organised economic activity, wherein the exchange of goods and services takes place.
A social science with stakes in many other fields, including political science, geography, mathematics, sociology, psychology, engineering, law, medicine and business.
An area of the economy in which businesses share the same or related business activity, product, or service. Sectors represent a large grouping of companies with similar business activities, such as the extraction of natural resources and agriculture.
The economic sectors are Primary, secondary and tertiary, which picture(s) represents the secondary sector?
The economic sectors are Primary, secondary and tertiary, which picture(s) represents the primary sector?
Which picture(s) represent the tertiary sector?
The (a) sector is the part of the economy that is run by individuals and companies for profit and is not state controlled. Therefore, it encompasses all for-profit businesses that are not owned or operated by the government.
The ______ sector is a part of the economy that comprises all organisations that are owned and operated by the government. This includes everything from schools and hospitals to roads and bridges. The main purpose of the _______ sector is to provide services that are considered essential for the well-being of society.
(a)
Three advantages of being a sole trader is...
Unlimited liability
Can get to know customers well
Can make decisions alone
Limited liability
Few legal requirements
Three disadvantages of being a partnership...
More capital may be available than a sole trader
Both partners have unlimited liability
Partners can specialize
Partnership is not a separate legal entity (if a partner dies then the partnership will end)
Most countries limit partnerships to 20 people (growth may suffer)
Limited liability is...
...is a structure used in business that prevents the owner(s) from being personally liable for business costs and losses.
...is a legal structure where full legal responsibility that business owners and partners assume for all business debts. This liability is not capped, and obligations can be paid through the seizure and sale of owners’ personal assets.
What is meant by unlimited liability?
It is a structure used in business that prevents the owner from being personally liable for business costs and losses.
It is the full legal responsibility that business owners and partners assume for all business debts. This liability is not capped, and obligations can be paid through the seizure and sale of owners’ personal assets, which is different than the popular limited liability business structure.
Two advantages of a Private limited company
All shareholders have limited liability so shareholders can only lose their investment.
Can make profits
Cannot sell the shares to the general public
Shares can be sold to a larger number of people, compared to partnerships and sole traders, so can possibly raise a good deal of capital.
Three advantages of a Public Limited Company (Plc)
Many legal requirements and more regulations.
Limited liability
Can receive better trade credit because of well-known name
No restriction on buying or selling shares
Required to Publish accounts
A franchise is...
is a person or company that grants a license to a third-party, giving them the right to open a new location and sell products or services using their brand, intellectual property or expertise. It is the original business that sells the right to use its idea and name.
is a type of license that grants a franchisee access to a franchisor's proprietary business knowledge, processes, and trademarks, thus allowing the franchisee to sell a product or service under the franchisor's business name.
is a small business owner who operates a franchise. They have purchased the right to use an existing business's trademarks, associated brands, and other proprietary knowledge to market and sell the same brand, and uphold the same standards as the first business.
A franchisor is...
is a person or company that grants a license to a third-party, giving them the right to open a new location and sell products or services using their brand, intellectual property or expertise. It is the original business that sells the right to use its idea and name.
is a small business owner who operates a franchise. They have purchased the right to use an existing business's trademarks, associated brands, and other proprietary knowledge to market and sell the same brand, and uphold the same standards as the first business.
is a type of license that grants a franchisee access to a franchisor's proprietary business knowledge, processes, and trademarks, thus allowing the franchisee to sell a product or service under the franchisor's business name.
A franchisee is...
is a small business owner who operates a franchise. They have purchased the right to use an existing business's trademarks, associated brands, and other proprietary knowledge to market and sell the same brand, and uphold the same standards as the first business.
is a person or company that grants a license to a third-party, giving them the right to open a new location and sell products or services using their brand, intellectual property or expertise. It is the original business that sells the right to use its idea and name.
is a type of license that grants a franchisee access to a franchisor's proprietary business knowledge, processes, and trademarks, thus allowing the franchisee to sell a product or service under the franchisor's business name.
Which picture shows famous franchises?
Which descriptions best describe a co-operative?
A business that is jointly owned and operated by its members, who also share the profits or advantages and have a mutual goal.
With a single vote each, members democratically select how the company will run.
Every owner has a requirement for the goods and services provided. Instead of seeking financial gain, the motivation is ethical.
It is a business or organization that's owned and controlled by its members, to meet their shared needs. The members can be its customers, employees, residents or suppliers, who have a say in how the co-op is run.
It is a non for profit business
To set up a company, the owners have to complete various documents and register the business at Companies House. This process is known as incorporation. A company is owned by shareholders. Each share in the business represents a part of the company. What types of businesses are companies?
Private limited company
Partnership
Public limited company
Sole trader
How can a company raise finance?
Selling shares of the business
By becoming a PLC
Reinvesting profits
Borrowing capital from a bank
Asking rival companies for help.
