Workbook 3

Question 1

Sole trader

Answer 1

The business in owned and operated by one person

Question 2

Partnership

Answer 2

A group with 2 - 20 people who own and run a business together

Question 3

Unincorporated business

Answer 3

No separated legal identity.

Client can sue your company and you/make you sell your own assets

Question 4

Liability

Answer 4

The level of risk in a company

Low

Question 5

Unlimited liability

Answer 5

The risk is very high so everything is risky

Question 6

Deed of partnership

Answer 6

A written document showing who is responsible for what and who has contributed more

Question 7

Memorandum of Association

Answer 7

A document that contains all the important information about a business and it’s owners.
Also contains it’s goals

Question 8

Private sector

Answer 8

Sector that consists of privately owned businesses who’s goal is to make a profit

Question 9

Public sector

Answer 9

A sector that consists of government owned businesses that are operated by the government and paid for by taxes.

Question 10

Sole trader advantages

Answer 10

-Few legal regulations to set up the business
-They are their own boss
-Has the ability to choose their own holidays
-Has the insentive to work hard as all the profits are theirs
-Doesn’t have to give out private information
-

Question 11

Sole trader disadvantages

Answer 11

The business stops when you are away
Unincorporated so you can be personal sued
Unlimited risk

Question 12

Partnership advantages

Answer 12

If one owner is away then the business keeps running
Partners can discus options
More work is done
More ideas about the company
More capital

Question 13

Partnership disadvantages

Answer 13

There can be disagreements between partners
Must share profits
Unincorporated can be sued personally
Unlimited risk

Question 14

Public limited company

Answer 14

A company has at least two shareholders and can sell shares to anyone on the stock market through stock exchange

Question 15

Private limited company

Answer 15

Has one or more shareholders and will only sell shares to people known to the company or existing shareholders

Question 16

Shareholder

Answer 16

Someone who partly owns a business by investing in it

Question 17

Accounts payable

Answer 17

We owe money😣

Question 18

Accounts rrceivable

Answer 18

people owe us money😁

Question 19

Incorporated business

Answer 19

Has a separate legal identity

Question 20

Private limited company

Advantages

Answer 20

More capital

Divorce of ownership and control as shareholders appoint directors

Question 21

Private limited company

Disadvantages

Answer 21

Must register with companies house
Legal documents
Accounts must be visible to community
Must pay dividends

Question 22

main reason companies decide to go public?

Answer 22

To get more capital to be able to expand and grow

Question 23

Franchise

Answer 23

An agreement by one company with another business to permit the sales of its goods and services using its trademark and brand. e.g Nike and rebel sport

Question 24

Franchisor

Answer 24

An existing, usually well known company with an established identity, market and brand name

Question 25

Franchisee

Answer 25

A sole trader/partnership/limited company that buys the right to use the business name, brand name, production methods and promotional material

Question 26

Joint venture

Answer 26

A contractual agreement between two or more organisations to share the expertise, investment, management, cost, profits and risks of running a new business e.g Japanese and the harbor bridge clip on lanes

Question 27

Franchise advantages

Answer 27

- Popular - Cheaper than starting a new business - Get free advertisement from the main company - Customer loyalty - Quality control for the customer

Question 28

Franchise disadvantages

Answer 28

- Must share a percentage of profits to with main company - Could put a bad name on the company - Costs a lot to set up - Must follow the strict guidelines from the main company

Question 29

Joint venture advantages

Answer 29

- Gets expertise | - More capital invested

Question 30

Joint venture disadvantages

Answer 30

- Disagreements - Must share profits - Cultural issues

Question 31

Venture capital

Answer 31

Capital provided for a business by people or groups usually for a share in the business and profits. e.g. shark tank, dragons den

Question 32

Dividens

Answer 32

The amount of money paid to the shareholders based on the profit of the business/limited company

Question 33

Centralised

Answer 33

Keeping all decisions within the head office or the center of the organisation

Question 34

Decentralised

Answer 34

Decision making powers and passed down the organisation to empower subordinates and regional manergers

Question 35

Hierarchy

Answer 35

The layers of management and command in the organisations (family tree sort of)

Question 36

Chain of command

Answer 36

The line of management and authority in a hierarchical organisation

Question 37

Function

Answer 37

Departments e.g. accounts, marketing, sales, production

Question 38

Delegation

Answer 38

The process of assigning tasks and the authority to carry them out to subordinates

Question 39

Subordinates

Answer 39

The people/employees/workers below someone

Question 40

Organisational structure

Answer 40

How roles, responsibilities and management authority are allocated within an organsiation

Question 41

Span of control

Answer 41

The number of subordinate staff that a manager serpervises

Question 42

Internal communication

Answer 42

Communication between people in the same organisation

Question 43

External communication

Answer 43

Communication with people outside the organisation

Question 44

Medium of communication

Answer 44

Methods of communication used

Question 45

Feedback

Answer 45

A response provided during two way communication from the receiver to the sender

Question 46

Two way Communication

Answer 46

Both sender and receiver are involved in the communication process allowing a discussion

Question 47

Features for effective communication

Answer 47

- Clear - Appropriate - Cost effective - Available/accessable

Question 48

Agenda

Answer 48

A to-do list. A list of items to be discussed at a meeting

Question 49

Memorandum

Answer 49

A note or recording to remind, prompt, or inform someone