L01

Question 1

Name a disadvantage of partnerships

Answer 1

Complications of partners joining or leaving

Question 2

Name 3 Business operations

Answer 2

1)private
2)public
3)third

Question 3

Name an advantage of unincorporated associations

Answer 3

Offers a democratic structure with flexibility

Question 4

Name an advantage of partnerships

Answer 4

Easy to set up
(Deed is advised)

Question 5

Chain of production

Answer 5

The process by which a production is transformed from raw materials into a finished product, ready to be eaten

Question 6

What form must be filled in to become a limited company?

Answer 6

Form IN01

Question 7

Partnership

Answer 7

A formal agreement between two or more parties to manage and operate a business and share its profits

Question 8

Define a company limited by guarantee

Answer 8

members give a guarantee to pay an agreed sum should the business go into administration

Question 9

Define broad of directors

Answer 9

A board of directors is made up of elected or appointed members

Question 10

define community interest company

Answer 10

A special form of non charitable limited company
which exists to primarily benefit a company

Question 11

Define Companies House

Answer 11

Official registration of limited companies . the documents are set out to companies house

Question 12

Define deed of partnership

Answer 12

An agreed legal document which outlines how the partnership will run - recommened

Question 13

Define Limited Partnership

Answer 13

Where one partner has unlimited liability and oversees and runs the business

Question 14

Disadvantage of private limited company

Answer 14

Shares can only be sold privately

Question 15

Disadvantage of sole trader

Answer 15

Reluctant to give finance as it’s risky

Question 16

Define Incorporated Business

Answer 16

Owners and Business have a legal difference

Question 17

Define Liability

Answer 17

Legal responsibility

Question 18

Define diviend

Answer 18

Left over profit payed to shareholders

Question 19

Disadvantage of unincorporated associations

Answer 19

extra capital may be harder to obtain

Question 20

Advantage of soletrader

Answer 20

the profits are solely owned to the individual

Question 21

How many people are required to set up a PLC?

Answer 21

1 person

Question 22

Limited Liability

Answer 22

The business and ownership are separate

Question 23

Partnership

Answer 23

A formal agreement between two or more parties to manage and operate a business to share its profits

Question 24

Private limited company

Answer 24

Shares are only for family and friends

Question 25

Public limited company

Answer 25

Shares are available on stock market

Question 26

Sole trader

Answer 26

A business where it’s owned by one individual

Question 27

Unincorporated associations

Answer 27

An organisation set up though an agreement of people who come together for another reason other than to make profit

Question 28

Unincorporated associations liability

Answer 28

Not separate legal entity No difference between owner snd Business

Question 29

Unlimited Liability

Answer 29

The owner and the Business are the same entity

Question 30

What 2 documents must be filled for a limited company?

Answer 30

1)The articles of association 2)Memorandum of association

Question 31

Who owns a private limited company?

Answer 31

Shareholder

Question 32

Who controls a private limited company?

Answer 32

Director

Question 33

# Paper - sampled material Business provides goods inferior quality compared to that of it's competitors. What is this? | section a - Multiple choice - Question 8 ## Footnote 1 mark

Answer 33

Business weaknes

Question 34

# Paper - sampled material What is a combination of objectives for a third organisation | section a - multiple choice - question 18 ## Footnote 1 mark

Answer 34

Increase revenue, reduce costs

Question 35

# Paper - sampled material What is not a source of finance avaliable for a sole trader? | Section a -Multiple choice-Question 16 ## Footnote 1 mark

Answer 35

Share issue

Question 37

The term 'delegation' refers to:

Answer 37

passing responsbility for a task to a subordinate

Question 38

What is a key feature of the public sector organisation?

Answer 38

It is funded by taxation

Question 39

Define state/goverment-owned organisations

Answer 39

A business owned by state and controlled by the goverment and it operates in the public sector

Question 40

Name 2 advantages of a state/goverment-owned organisations

Answer 40

1)Availability of funds 2)wide range of expertise

Question 41

Namw 2 disadvantages of the state/goverment-owned organisation

Answer 41

1)bureaucratic 2)inflexible procedures

Question 42

Define registered charities/not for profit

Answer 42

A business with chairtable status

Question 43

Give an advantage of registered charities

Answer 43

1)Tax advanatges/exemption 2)Direct control of business aims

Question 44

Give a disadvantage of registered chairites

Answer 44

1)strict charitable status test 2)financial accounts not private

Question 45

Define community interest company

Answer 45

A cic is a company set up by the private individuals to benefit society, rather than make a profit

Question 46

Give an advantage of Community interest companies

Answer 46

1)No dividens to pay 2)Any profit is reinvested into the Business

Question 47

Give 2 disadvantages of a community interest company

Answer 47

1)Must pay income tax 2)finacial accounts not private

Question 48

Define income tax

Answer 48

Tax imposed on peoples personal income

Question 49

What does have a seperate legal entity mean?

Answer 49

Seperate legal entity means the business can sue, and be sued

Question 50

Who is responsible for decision-making in a public limited company?

Answer 50

directors

Question 51

A Public Limited Company has: a-unlimited liability b-must hold an AGM c-pays income tax d-requires a deed of partnership

Answer 51

b - must hold an AGM All public limited companies must hold an AGM meeting as it's compulsory