Business Concepts and Structures

The primary purpose of businesses is to create goods or provide services for customers and generate profit for the owners.

Durable goods are items that can be used repeatedly, such as a computer.

Examples of non-durable goods include a bottle of water and a pizza; they can only be used once or a few times.

<p>Goods are tangible items that can be seen and touched, while services are actions performed for people.</p> Signup and view all the answers

<p>Taxi services, hairdressing, and holiday booking are all examples of services provided by businesses.</p> Signup and view all the answers

<p>Local businesses operate only in one area, while national businesses have locations across the entire country.</p> Signup and view all the answers

<p>McDonald's is an example of a multi-national business as it operates in many countries around the world.</p> Signup and view all the answers

<p>Local businesses are usually small, whereas multi-national businesses are large and operate in multiple countries.</p> Signup and view all the answers

<p>National businesses have shops or offices that are distributed all over the country.</p> Signup and view all the answers

<p>Local businesses typically focus on a specific community or area, such as Baltic Book Shop.</p> Signup and view all the answers

<p>Charities primarily aim to help a cause and do not seek to make a profit, while social enterprises focus on tackling social problems and making a difference.</p> Signup and view all the answers

<p>Charities fund their activities through donations and fundraising events such as sponsored walks and coffee mornings.</p> Signup and view all the answers

<p>Profits made by social enterprises are reinvested back into the business or used to benefit the local community.</p> Signup and view all the answers

<p>Directors in a charity are responsible for managing the organization and ensuring it fulfills its mission to help a cause.</p> Signup and view all the answers

<p>Social enterprises balance profit with social objectives by making their money from sales and reinvesting any profits to further their social mission.</p> Signup and view all the answers

<p>Limited liability protects the personal belongings of owners from being used to pay off business debts.</p> Signup and view all the answers

<p>The business is managed by Directors chosen by the shareholders, often family members.</p> Signup and view all the answers

<p>Profits must be shared among the shareholders.</p> Signup and view all the answers

<p>Private limited companies are often perceived as more stable and credible, improving their borrowing capacity.</p> Signup and view all the answers

<p>The sole trader has complete control over all decisions.</p> Signup and view all the answers

<p>Shares can only be sold to specific individuals, typically within the family or select parties.</p> Signup and view all the answers

<p>Unlimited liability means the owner is personally responsible for all business debts.</p> Signup and view all the answers

<p>A sole trader can finance their business through personal savings or bank loans.</p> Signup and view all the answers

<p>It can be difficult for a sole trader to take time off from the business.</p> Signup and view all the answers

<p>A sole trader keeps all the profits generated by the business.</p> Signup and view all the answers

<p>Shareholders benefit from limited liability, meaning they are not personally responsible for the company's debts.</p> Signup and view all the answers

<p>A public limited company raises capital by selling shares to the public on the stock market.</p> Signup and view all the answers

<p>Public limited companies must share profits among their shareholders, which can reduce individual returns.</p> Signup and view all the answers

<p>There is a takeover risk, as anyone can buy shares and potentially gain control of the company.</p> Signup and view all the answers

<p>Public limited companies must disclose their financial statements, which can be scrutinized by competitors and the public.</p> Signup and view all the answers

<p>Private sector organizations are owned by individuals and aim to make a profit, while public sector organizations are government-owned and provide services without the goal of profit.</p> Signup and view all the answers

<p>Private sector organizations usually finance their operations through owners' savings and bank loans.</p> Signup and view all the answers

<p>Public sector organizations are primarily funded by government revenues collected through taxes paid by the public.</p> Signup and view all the answers

<p>An example of a private sector organization is McDonald's, whose primary aim is to generate profit through food sales.</p> Signup and view all the answers

<p>Public sector organizations provide essential services to the community, focusing on public welfare rather than profit.</p> Signup and view all the answers