Business 1.2

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What is a key advantage of partnerships?

Prolonged decision-making

Lack of harmony

Financial strength (correct)

Unlimited liability

Which of the following is a disadvantage of a partnership?

Financial privacy

Limited liability

Specialisation and division of labour

Unlimited liability (correct)

What is the main aim of private sector organizations?

To generate profit for owners (correct)

To promote social welfare

To regulate industry standards

To provide essential goods and services

What does limited liability imply for shareholders?

They can lose only their investment in the company. Signup and view all the answers

Which type of business entity is owned and controlled by private individuals?

Sole traders Signup and view all the answers

Which of the following is NOT a characteristic of a private limited company?

Shares can be sold to the general public. Signup and view all the answers

What characterizes public sector organizations?

Owned and controlled by the government Signup and view all the answers

What is a common reason for disputes in partnerships?

Differences in opinion among partners. Signup and view all the answers

Which of the following is a feature of nonprofit social enterprises?

Reinvest surplus back into the organization Signup and view all the answers

Why might a family-run private limited company prefer to remain private?

To avoid costs associated with public flotation. Signup and view all the answers

What is an example of a privately held company?

A family-owned business not listed publicly Signup and view all the answers

What is a potential financial implication of becoming a public limited company?

Need to make financial accounts public. Signup and view all the answers

What is a major benefit of being a publicly held company?

Ability to raise finance through public share offerings. Signup and view all the answers

What is the primary characteristic of cooperatives?

Owned and controlled by their members Signup and view all the answers

Which type of organization is primarily involved in providing essential mailing services?

Public sector organizations Signup and view all the answers

Which of the following is a feature of partnerships?

All partners have equal management rights Signup and view all the answers

What characterizes a privately held company?

Shares are typically owned by family or friends. Signup and view all the answers

What is a potential disadvantage of transitioning Mars Incorporated to a publicly held company?

Increased pressure from shareholders for dividend payments. Signup and view all the answers

How does a public limited company raise capital?

By issuing shares on a stock exchange. Signup and view all the answers

Which of the following companies is an example of a publicly held company?

Honda Motor Company, Ltd. Signup and view all the answers

What might hinder the decision of the Mars family to float their company publicly?

Historical and personal reluctance. Signup and view all the answers

Which of the following is NOT a disadvantage of limited liability companies?

Easier access to capital from investors. Signup and view all the answers

What enables a publicly held company to provide shares to a wide audience?

Public trading on stock exchanges. Signup and view all the answers

What does the term 'continuity' refer to in the context of limited liability companies?

The ability to maintain business operations without interruption. Signup and view all the answers

What is one advantage of cooperatives?

Decision-making power Signup and view all the answers

How does GWD claim to operate more sustainably compared to traditional whisky industries?

By generating its own electricity Signup and view all the answers

What does the phrase 'triple bottom line' refer to?

Environmental, social, and economic performance Signup and view all the answers

What is a common feature of non-governmental organizations (NGOs)?

They provide public goods and services Signup and view all the answers

What factor does NOT typically affect the choice of business type when establishing a new business?

Environmental sustainability practices Signup and view all the answers

What could be considered a disadvantage of cooperatives?

Limited promotional opportunities Signup and view all the answers

Which statement is true regarding for-profit organizations and non-profit social enterprises?

Non-profit social enterprises tend to focus on societal benefits. Signup and view all the answers

How do private sector social enterprises plan to use their surpluses?

To benefit society through various initiatives Signup and view all the answers

Why may some goods and services provided by NGOs be underprovided by the public sector?

Government priorities shift frequently Signup and view all the answers

How do cooperatives differ from traditional businesses?

Members engage in decision-making and share profits Signup and view all the answers

What role do public sector for-profit social enterprises usually play?

They address inefficiencies left by the private sector Signup and view all the answers

What is the purpose of This Saves Lives as a social enterprise?

To end severe acute malnutrition in children Signup and view all the answers

What is a defining characteristic of GlenWyvis Distillery?

It is owned and run by local community members Signup and view all the answers

What is a potential disadvantage of slower decision-making in cooperatives?

Delayed responses to market changes Signup and view all the answers

What is the primary aim of private sector for-profit social enterprises?

To make a surplus to achieve social aims Signup and view all the answers

In what way do cooperatives ensure social responsibility?

By allowing members to vote on decisions and share profits Signup and view all the answers