Business Organisations

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  • Created by: B Deery
  • Created on: 27-04-16 12:31
What type of liability has a Sole Trader?
Unlimited liability
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What is meant by limited liability?
Shareholders loss money they invested into business but no more.
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List four factors of production
Land, labour, capital and enterprise
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What are the initials for a private limited company?
Ltd
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What sector does a PLC belong to?
Private
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List two types of organisations in the public sector
Municipal Undertakings and Public Corporations
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Give example of two public corporations.
BBC, Bank of England, Royal Mint, British Waterways, British Nuclear
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What is a social enterprise?
A business with a social aim and reinvests profits back into the aim ie unemployed, disabled people, minority ethnics
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How are municipal undertakings financed?
Government grants, rates and charge for activities
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What is a franchise?
Successful business idea is hired out to other businesses.
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What is the reward the franchiser received from the franchisee?
Royalty (share of profit)
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What are the two main features of limited companies?
Limited liability and separate legal existence (incorporation)
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List the documents necessary to form a limited company.
Memorandum of Association, Articles of Association, Certificate of Incorporation, Prospectus and Trading Certificate
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List two advantages for a franchisor.
Increased opportunities for expansion without capital outlay. Receives percentage of profit known as royalty.
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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.
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List two types of shares.
Ordinary shares and preference shares
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List the two things listed in Partnership Act 1890
All profits/losses shared equally. No partner paid a salary.
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Name two types of partners
Ordinary partner and sleeping partner
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Name three types of capital
Start-up capital, additional capital and working capital.
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List the five types of internal sources of finance
Debt collection, sale of stock, sale of asset, retained profit and owner's own capital
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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
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What is a mission statement?
Firm's aims summarised in a short statement
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List six business aims
Survival, growth, profit maximisation, concern for the environment, corporate image, public service
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List eight stakeholders
Owners, producers, shareholders, consumers, trade unions, directors, managers, taxpayers
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Other cards in this set

Card 2

Front

What is meant by limited liability?

Back

Shareholders loss money they invested into business but no more.

Card 3

Front

List four factors of production

Back

Preview of the front of card 3

Card 4

Front

What are the initials for a private limited company?

Back

Preview of the front of card 4

Card 5

Front

What sector does a PLC belong to?

Back

Preview of the front of card 5
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