Intoduction To Business - Slatery

Question 1

Company (limited/ltd)

Answer 1

A limited company is a business that is owned by share holders who have bought shares from the company. It is run by the directors.

Question 2

Memorandum of associations

Answer 2

The general document stating general information about the company

Question 3

Advantages of a Limited Company (4)

Answer 3

1, each stakeholders enjoys limited liability
2, debts are shared out amongst shareholders
3, easier to raise finance
4, there is continuity whatever happens

Question 4

Disadvantages of a limited company (3)

Answer 4

1, more complicated to set up
2, loss of individual control due to shareholders
3, business and financial accounts must be made public and published

Question 5

Public limited company (PLC)

Answer 5

• company name has PLC at the end
• owners are shareholders (like LTD)
• the shareholders are members of the general public

Question 6

Advantages of a PLC (2)

Answer 6

1, greater availability of finance (investors)

2, excellent publicity

Question 7

Disadvantages of PLC (3)

Answer 7

1, some shareholders disagree with the business I.e. ethically speaking
2, greater threat than a takeover
3, share prices might drop due to bad publicity

Question 8

Franchise?

Answer 8

Paying a royalty fee to trade under another business name.

Question 9

Examples of franchises?

Answer 9

McDonald’s
SubWay
Thorntons
Burger King

Question 10

Royalty free?

Answer 10

A few to set up a franchise. You pay them in order to trade under their name.

Question 11

Public sector

Answer 11

A service provided by national government or local government

Question 12

Private sector

Answer 12

A private service provided by a private business, they seek to make more profit

Question 13

Examples of local government (4)

Answer 13

1, local library
2, housing
3, recycling
4, local ooo services

Question 14

Examples of national government (5)

Answer 14

1, the armed forces
2, prison service 
3, the justice service 
4, police
5, NHS

Question 15

Privatisation?

Answer 15

When public service enterprises are sold by the government to businesses which are owned by private shareholders

Question 16

Examples of privatisation (4)

Answer 16

1, British Gas
2, British airways
3, BT
4, British rail

Question 17

Nationalisation?

Answer 17

When private sector enterprises are bought/taken over by the government. The business becomes government owned/controlled business.

Question 18

Examples of nationalisation (1)

Answer 18

1, Bank of England

Question 19

Mission statement?

Answer 19

Overall purpose of the business

Question 20

Business aim?

Answer 20

What a business is trying to achieve

Question 21

Business objectives?

Answer 21

More specific and short term aim

Question 22

Reason for mission statement?

Answer 22

1, It determines the companies direction
2, it keeps everyone clear and direct
3, it helps to recruit and retain staff (best staff)
4, helps retain customer loyalty

Question 23

Examples of stakeholders at schools

Answer 23

1, suppliers 
2, teachers 
3, students
4, parents
5, ofsted
6, staff

Question 24

Internal stakeholders?

Answer 24

The individual and parties that are part of an organisation ( school=staff)

Question 25

External stakeholders?

Answer 25

The parties and groups that aren’t a part of the organisation but gets effected by its activities (school=suppliers, competition, parents)