Business Organisations 0.0 / 5 ? Business StudiesOwnership and controlGCSECCEA Created by: B DeeryCreated on: 27-04-16 12:31 What type of liability has a Sole Trader? Unlimited liability 1 of 24 What is meant by limited liability? Shareholders loss money they invested into business but no more. 2 of 24 List four factors of production Land, labour, capital and enterprise 3 of 24 What are the initials for a private limited company? Ltd 4 of 24 What sector does a PLC belong to? Private 5 of 24 List two types of organisations in the public sector Municipal Undertakings and Public Corporations 6 of 24 Give example of two public corporations. BBC, Bank of England, Royal Mint, British Waterways, British Nuclear 7 of 24 What is a social enterprise? A business with a social aim and reinvests profits back into the aim ie unemployed, disabled people, minority ethnics 8 of 24 How are municipal undertakings financed? Government grants, rates and charge for activities 9 of 24 What is a franchise? Successful business idea is hired out to other businesses. 10 of 24 What is the reward the franchiser received from the franchisee? Royalty (share of profit) 11 of 24 What are the two main features of limited companies? Limited liability and separate legal existence (incorporation) 12 of 24 List the documents necessary to form a limited company. Memorandum of Association, Articles of Association, Certificate of Incorporation, Prospectus and Trading Certificate 13 of 24 List two advantages for a franchisor. Increased opportunities for expansion without capital outlay. Receives percentage of profit known as royalty. 14 of 24 List three advantages of a Ltd. Limited liability. Amount of capital they can raise is greater than sole trader and partnership. Benefits from economy of scale. 15 of 24 List two types of shares. Ordinary shares and preference shares 16 of 24 List the two things listed in Partnership Act 1890 All profits/losses shared equally. No partner paid a salary. 17 of 24 Name two types of partners Ordinary partner and sleeping partner 18 of 24 Name three types of capital Start-up capital, additional capital and working capital. 19 of 24 List the five types of internal sources of finance Debt collection, sale of stock, sale of asset, retained profit and owner's own capital 20 of 24 List eight types of external sources of finance Hire purchase, issue of shares, additional partners, hire purchase, leasing, government grant, mortgage, trade credit, bank loan or overdraft 21 of 24 What is a mission statement? Firm's aims summarised in a short statement 22 of 24 List six business aims Survival, growth, profit maximisation, concern for the environment, corporate image, public service 23 of 24 List eight stakeholders Owners, producers, shareholders, consumers, trade unions, directors, managers, taxpayers 24 of 24
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