Podcast
Questions and Answers
What is the main difference between incorporated and unincorporated companies in the private sector?
What is the main difference between incorporated and unincorporated companies in the private sector?
- Incorporated companies have no legal distinction between the company and its owners, while unincorporated companies are considered separate from their owners
- Incorporated companies are considered separate from their owners, while unincorporated companies have no legal distinction between the company and its owners (correct)
- Incorporated companies have unlimited liability, while unincorporated companies are not liable for any debts
- Incorporated companies are not liable for any debts, while unincorporated companies have complete financial responsibility
What is the characteristic of a sole trader in an unincorporated business?
What is the characteristic of a sole trader in an unincorporated business?
- Complete financial responsibility and unlimited liability (correct)
- No financial responsibility and limited liability
- Limited liability and shared financial responsibility
- Shared financial responsibility and unlimited liability
Why might an unincorporated company be the preferred option for many businesses despite the personal risk?
Why might an unincorporated company be the preferred option for many businesses despite the personal risk?
- To benefit from complete financial responsibility and unlimited liability
- To avoid any legal distinction between the company and its owners
- To have limited liability and reduced financial responsibility (correct)
- To have the owners liable for any actions or debts of the company
What is the legal distinction between owners and the company in an unincorporated company?
What is the legal distinction between owners and the company in an unincorporated company?
What is the level of liability for owners in an unincorporated company?
What is the level of liability for owners in an unincorporated company?
What is the primary advantage of incorporated companies in terms of liability?
What is the primary advantage of incorporated companies in terms of liability?
In the United Arab Emirates, what percentage of ownership is allowed for foreign nationals in certain professional services as sole traders?
In the United Arab Emirates, what percentage of ownership is allowed for foreign nationals in certain professional services as sole traders?
What is the main difference between private limited and public limited companies in terms of share trading?
What is the main difference between private limited and public limited companies in terms of share trading?
What is a key disadvantage of being a sole trader?
What is a key disadvantage of being a sole trader?
What is a characteristic of partnerships with limited liability?
What is a characteristic of partnerships with limited liability?
What is a defining feature of incorporated companies?
What is a defining feature of incorporated companies?
What is a common advantage of partnerships?
What is a common advantage of partnerships?
What is a potential advantage of incorporation for a business?
What is a potential advantage of incorporation for a business?
What is a common challenge faced by MSMEs?
What is a common challenge faced by MSMEs?
What is a distinguishing feature of SMEs according to the OECD?
What is a distinguishing feature of SMEs according to the OECD?
What is a potential drawback of incorporation for a business?
What is a potential drawback of incorporation for a business?
In which sectors are SMEs prevalent?
In which sectors are SMEs prevalent?
What potential impact can technology advancements have on MSMEs?
What potential impact can technology advancements have on MSMEs?
What is the true indicator of an organization's financial health?
What is the true indicator of an organization's financial health?
How do investors assess the risk and return of buying shares?
How do investors assess the risk and return of buying shares?
What do ordinary shares entitle the holder to?
What do ordinary shares entitle the holder to?
How is share value determined?
How is share value determined?
What led to panic among speculators during the dot com bust in the late 1990s?
What led to panic among speculators during the dot com bust in the late 1990s?
How does the stock market affect the economy?
How does the stock market affect the economy?
What percentage of turnover from cross-border sources do manufacturing SMEs receive, according to OECD?
What percentage of turnover from cross-border sources do manufacturing SMEs receive, according to OECD?
What percentage of total sales do direct exports represent for SMEs in developing countries' manufacturing sector?
What percentage of total sales do direct exports represent for SMEs in developing countries' manufacturing sector?
What is the main determinant of business profitability, according to the text?
What is the main determinant of business profitability, according to the text?
What drives economic growth, according to the text?
What drives economic growth, according to the text?
What are the three explanations for the relationship between market share and return on investment?
What are the three explanations for the relationship between market share and return on investment?
What percentage of the world's total trade is accounted for by the top ten traders in merchandise, according to the text?
What percentage of the world's total trade is accounted for by the top ten traders in merchandise, according to the text?
What does the Supply Positioning Matrix consider?
What does the Supply Positioning Matrix consider?
What method is used to communicate sourcing strategy and engage participants?
What method is used to communicate sourcing strategy and engage participants?
What does Porter's Five Forces model assess?
What does Porter's Five Forces model assess?
What does the Market Strategic Positioning Table summarize the strategy based on?
What does the Market Strategic Positioning Table summarize the strategy based on?
What is the main focus of the Supply Strategy?
What is the main focus of the Supply Strategy?
What does the Sourcing Strategy document include?
What does the Sourcing Strategy document include?
What is the primary purpose of contract management?
What is the primary purpose of contract management?
What is a crucial consideration in contract design for effective supplier selection?
What is a crucial consideration in contract design for effective supplier selection?
What is essential for a good relationship in contract administration?
What is essential for a good relationship in contract administration?
What is a key aspect of contract evolution as circumstances change?
What is a key aspect of contract evolution as circumstances change?
What does contract performance monitoring rely on?
What does contract performance monitoring rely on?
What is a critical element of contract administration?
What is a critical element of contract administration?
What is an essential factor in contract management?
What is an essential factor in contract management?
What is necessary to ensure value for money in contracts?
What is necessary to ensure value for money in contracts?
What is recommended for managing supplier relationships even after the contract ends?
What is recommended for managing supplier relationships even after the contract ends?
What is a valuable way to achieve continuous improvement and manage supply risk?
What is a valuable way to achieve continuous improvement and manage supply risk?
What varies depending on the size and capability of the organization?
What varies depending on the size and capability of the organization?
What is the authority of central government according to the OECD?
What is the authority of central government according to the OECD?
What is the purpose of the Kraljic matrix?
What is the purpose of the Kraljic matrix?
What is the primary function of the Pareto principle in spend analysis?
What is the primary function of the Pareto principle in spend analysis?
What is the characteristic of tactical profit items in the Kraljic matrix?
What is the characteristic of tactical profit items in the Kraljic matrix?
Why is data collection for spend analysis recommended to be kept to a minimum?
Why is data collection for spend analysis recommended to be kept to a minimum?
What is the purpose of supply positioning analysis?
What is the purpose of supply positioning analysis?
What is the main advantage of bundling for tactical acquisition items?
What is the main advantage of bundling for tactical acquisition items?
What type of information does quantitative research provide?
What type of information does quantitative research provide?
What type of questions should be avoided in field research?
What type of questions should be avoided in field research?
What should be the focus when talking to people in field research?
What should be the focus when talking to people in field research?
What should be avoided when asking questions during field research?
What should be avoided when asking questions during field research?
What is the purpose of qualitative research in field research?
What is the purpose of qualitative research in field research?
Why is it important to talk to enough people in field research?
Why is it important to talk to enough people in field research?
What type of questions should be avoided in field research, according to the text?
What type of questions should be avoided in field research, according to the text?
What is the primary purpose of qualitative research in field research?
What is the primary purpose of qualitative research in field research?
What is recommended for managing supplier relationships even after the contract ends?
What is recommended for managing supplier relationships even after the contract ends?
What is a crucial consideration in contract design for effective supplier selection?
What is a crucial consideration in contract design for effective supplier selection?
Why should closed questions that elicit only a 'yes' or 'no' answer be avoided in field research?
Why should closed questions that elicit only a 'yes' or 'no' answer be avoided in field research?
What potential impact can technology advancements have on MSMEs, according to the text?
What potential impact can technology advancements have on MSMEs, according to the text?
In spend analysis, what is the significance of knowing the details of what you are spending?
In spend analysis, what is the significance of knowing the details of what you are spending?
What is the basis for segmenting purchases into groups and developing strategies for each in procurement?
What is the basis for segmenting purchases into groups and developing strategies for each in procurement?
What is the key focus for the sourcing strategy in the supply positioning model?
What is the key focus for the sourcing strategy in the supply positioning model?
What is the strategy for items classified as strategic security in the supply positioning model?
What is the strategy for items classified as strategic security in the supply positioning model?
What is the consideration for commercial supply risk in the supply positioning model?
What is the consideration for commercial supply risk in the supply positioning model?
What is the significance of the Kraljic matrix in the supply positioning model?
What is the significance of the Kraljic matrix in the supply positioning model?
What type of information does quantitative research provide?
What type of information does quantitative research provide?
What is a key consideration when conducting field research?
What is a key consideration when conducting field research?
What type of questions should be avoided in field research?
What type of questions should be avoided in field research?
What should be ensured when talking to people during field research?
What should be ensured when talking to people during field research?
What is a potential risk of basing analysis on the views of a limited number of people?
What is a potential risk of basing analysis on the views of a limited number of people?
What should be avoided in field research to ensure independence of views?
What should be avoided in field research to ensure independence of views?
Which procedure is designed for items needing modification and involves two stages of response to questions and final tender submission?
Which procedure is designed for items needing modification and involves two stages of response to questions and final tender submission?
What is the main feature of the innovation partnership procedure?
What is the main feature of the innovation partnership procedure?
What is a key principle of the competitive dialogue procedure?
What is a key principle of the competitive dialogue procedure?
In which procedure are statutory timescales for the negotiation phase not specified?
In which procedure are statutory timescales for the negotiation phase not specified?
What are the two stages of the competitive dialogue procedure?
What are the two stages of the competitive dialogue procedure?
Which procedure is used when high interest from the supply market is anticipated, creating a shortlist through a two-stage selection process?
Which procedure is used when high interest from the supply market is anticipated, creating a shortlist through a two-stage selection process?
What is the formula for determining value in procurement and supply chain management?
What is the formula for determining value in procurement and supply chain management?
What are the key resources required to provide a service in procurement and supply chain management?
What are the key resources required to provide a service in procurement and supply chain management?
What is a key consideration when analyzing key activities fundamental to providing a service?
What is a key consideration when analyzing key activities fundamental to providing a service?
What is the role of procurement and supply in achieving cost and budget savings in the BMC (business model canvas)?
What is the role of procurement and supply in achieving cost and budget savings in the BMC (business model canvas)?
What may be necessary if current suppliers cannot meet organizational needs in procurement and supply chain management?
What may be necessary if current suppliers cannot meet organizational needs in procurement and supply chain management?
What does ethical sourcing involve in procurement and supply chain management?
What does ethical sourcing involve in procurement and supply chain management?
What are examples of efficiency savings in procurement activities?
What are examples of efficiency savings in procurement activities?
What is the primary focus of the business model canvas (BMC)?
What is the primary focus of the business model canvas (BMC)?
What should budget allocation in the public sector be based on?
What should budget allocation in the public sector be based on?
What are the key components of the business model canvas (BMC)?
What are the key components of the business model canvas (BMC)?
What is the primary purpose of the BMC in the public sector?
What is the primary purpose of the BMC in the public sector?
What should be the focus of strategies in the public sector?
What should be the focus of strategies in the public sector?
What is the specific format for broadcasting the intended tender in the EU/UK public sector procurement?
What is the specific format for broadcasting the intended tender in the EU/UK public sector procurement?
In the private sector and in other territories, the processes for issuing and managing a tender might be:
In the private sector and in other territories, the processes for issuing and managing a tender might be:
When should the open procedure be used for issuing a tender?
When should the open procedure be used for issuing a tender?
What is the purpose of publishing a notice with information about the award once the successful tender is selected?
What is the purpose of publishing a notice with information about the award once the successful tender is selected?
How many different processes can be used to issue and manage a tender in the EU/UK public sector procurement?
How many different processes can be used to issue and manage a tender in the EU/UK public sector procurement?
What is the role of the Competitive dialogue procedure in the tendering process?
What is the role of the Competitive dialogue procedure in the tendering process?
What is the primary focus of procurement efficiency savings?
What is the primary focus of procurement efficiency savings?
What is the primary purpose of the partnership termination or reduction option in procurement?
What is the primary purpose of the partnership termination or reduction option in procurement?
What is the key characteristic of assessing value for money in procurement?
What is the key characteristic of assessing value for money in procurement?
What is the main focus of economy savings in procurement?
What is the main focus of economy savings in procurement?
What is the primary consideration for awarding contracts in procurement?
What is the primary consideration for awarding contracts in procurement?
What is the significance of the research and development stages in procurement efficiency?
What is the significance of the research and development stages in procurement efficiency?
What is the specific format for broadcasting an intended tender according to EU rules?
What is the specific format for broadcasting an intended tender according to EU rules?
When must a notice with information about the award be published according to EU rules?
When must a notice with information about the award be published according to EU rules?
In which sectors do the mentioned processes for issuing and managing tenders apply?
In which sectors do the mentioned processes for issuing and managing tenders apply?
When should the open procedure be used for issuing a tender?
When should the open procedure be used for issuing a tender?
How many different processes can be used to issue and manage a tender according to the text?
How many different processes can be used to issue and manage a tender according to the text?
What is the purpose of publishing a Call for Competition notice in the Official Journal of the European Union (OJEU)?
What is the purpose of publishing a Call for Competition notice in the Official Journal of the European Union (OJEU)?
What is the primary focus of economy savings in procurement?
What is the primary focus of economy savings in procurement?
What is the key factor in determining payment in the procurement procedure?
What is the key factor in determining payment in the procurement procedure?
What is the main objective of procurement efficiency savings?
What is the main objective of procurement efficiency savings?
How can the partnership in procurement be affected based on tender documents?
How can the partnership in procurement be affected based on tender documents?
What is the basis for awarding contracts in procurement?
What is the basis for awarding contracts in procurement?
What is an example of assessing value for money in procurement?
What is an example of assessing value for money in procurement?
What is a key concern regarding regulation, as mentioned in the text?
What is a key concern regarding regulation, as mentioned in the text?
Which organisation in the UK provides oversight for public sector accountability?
Which organisation in the UK provides oversight for public sector accountability?
What is the role of the Comptroller and Auditor General (CAG) in India?
What is the role of the Comptroller and Auditor General (CAG) in India?
What is the primary characteristic of the 'not-for-profit' sector?
What is the primary characteristic of the 'not-for-profit' sector?
What is the main concern regarding high levels of scrutiny and regulation, as mentioned in the text?
What is the main concern regarding high levels of scrutiny and regulation, as mentioned in the text?
What is the key responsibility of the National Audit Office in the UK?
What is the key responsibility of the National Audit Office in the UK?
What is the primary purpose of disclosure statements and reports in governance of Third Sector Organizations?
What is the primary purpose of disclosure statements and reports in governance of Third Sector Organizations?
What is the main focus of procurement specifications in Third Sector Organizations?
What is the main focus of procurement specifications in Third Sector Organizations?
What is the role of governance in Third Sector Organizations?
What is the role of governance in Third Sector Organizations?
What is the primary function of performance management systems in Third Sector Organizations?
What is the primary function of performance management systems in Third Sector Organizations?
What is the primary goal of procurement in Third Sector Organizations?
What is the primary goal of procurement in Third Sector Organizations?
What is the significance of clear and unambiguous communication of requirements in procurement for Third Sector Organizations?
What is the significance of clear and unambiguous communication of requirements in procurement for Third Sector Organizations?
What is the primary focus of the Nundah Community Enterprise Cooperative?
What is the primary focus of the Nundah Community Enterprise Cooperative?
What distinguishes charities in terms of their objectives, funds, and assets?
What distinguishes charities in terms of their objectives, funds, and assets?
What is the primary purpose of housing associations?
What is the primary purpose of housing associations?
What is the main focus of voluntary groups like trade unions and professional societies?
What is the main focus of voluntary groups like trade unions and professional societies?
Why do not-for-profit and third sector organizations often receive calls for greater accountability?
Why do not-for-profit and third sector organizations often receive calls for greater accountability?
What is the essential aspect of accountability for nonprofit organizations?
What is the essential aspect of accountability for nonprofit organizations?
What distinguishes social enterprises from traditional businesses?
What distinguishes social enterprises from traditional businesses?
What is a distinguishing feature of co-operatives compared to mutuals?
What is a distinguishing feature of co-operatives compared to mutuals?
What is a trend in the formation of companies in the UK, according to the text?
What is a trend in the formation of companies in the UK, according to the text?
What is a potential alternative to outsourcing part of the public sector to the private sector?
What is a potential alternative to outsourcing part of the public sector to the private sector?
What is a key characteristic of both mutuals and co-operatives?
What is a key characteristic of both mutuals and co-operatives?
What does the future of public services, charities, and private enterprise look like, according to the text?
What does the future of public services, charities, and private enterprise look like, according to the text?
What are the four core components of accountability?
What are the four core components of accountability?
Who are not-for-profit and third sector organizations held accountable to?
Who are not-for-profit and third sector organizations held accountable to?
What are common forms of fraud in the not-for-profit sector?
What are common forms of fraud in the not-for-profit sector?
What are the responsibilities of governance in the not-for-profit and third sectors?
What are the responsibilities of governance in the not-for-profit and third sectors?
What presents challenges in performance management for not-for-profit organizations?
What presents challenges in performance management for not-for-profit organizations?
What does upward accountability involve in not-for-profit organizations?
What does upward accountability involve in not-for-profit organizations?
What are the four core components of accountability?
What are the four core components of accountability?
What is the primary focus of governance in not-for-profit and third sector organizations?
What is the primary focus of governance in not-for-profit and third sector organizations?
What presents challenges in performance management for not-for-profit organizations?
What presents challenges in performance management for not-for-profit organizations?
What is the primary difference in defining the mission of a not-for-profit organization compared to commercial organizations?
What is the primary difference in defining the mission of a not-for-profit organization compared to commercial organizations?
What does upward accountability involve in the context of not-for-profit organizations?
What does upward accountability involve in the context of not-for-profit organizations?
What is the scope of accountability in not-for-profit and third sector organizations?
What is the scope of accountability in not-for-profit and third sector organizations?
Study Notes
Private Sector Organizations and Global Business
- SMEs form networks and clusters to pool resources and access technology and business skills
- OECD finds SMEs increasingly working globally, with manufacturing SMEs receiving 10-40% of turnover from cross-border sources
- Direct exports represent only 7.6% of total sales of SMEs in developing countries' manufacturing sector
- Opportunity for SMEs grows as larger organizations outsource services
- Barriers to entry and exit need to be small for economic growth and business start-ups
- Multi-national corporations have facilities and assets in multiple countries, with at least one-third of revenue from overseas subsidiaries
- 52 of the 100 largest economies are corporations, and the top ten traders in merchandise account for over half of the world's total trade
- Private sector drives economic growth by making a profit, providing financial return to shareholders, and reinvesting in the business
- Profit is an indicator of organization efficiency and helps allocate resources based on consumer demand
- Economic growth is determined by companies' investment in technology and research, which depends on their profit
- Market share is a main determinant of business profitability, with a relationship between market share and return on investment
- Three explanations for the relationship include economies of scale, market power, and quality of management
Contract Performance and Procurement in the Public Sector
- Clear communication channels, including reporting format and frequency, are essential in contract management.
- Regular price benchmarking or market testing is necessary to ensure value for money in contracts.
- Financial penalties for poor performance should be clearly specified in the contract and deducted based on agreed evidence.
- Building a mature and trusting relationship with suppliers allows for mutual challenge and contract improvement ideas.
- Contract completion involves activities at the end of the contract, including renewal triggers, transition plans, and lessons learned.
- Good practice involves ending contracts on good terms and managing supplier relationships even after the contract ends.
- Supplier relationship management (SRM) is a valuable way to achieve continuous improvement and manage supply risk.
- Procurement scope and role vary depending on the size and capability of the organization.
- The public sector provides services to citizens, including education, law enforcement, healthcare, and social services.
- Central government sets minimum standards across public services and may intervene to correct situations.
- The OECD defines central government as having authority over the entire economy and the power to impose taxes.
- Non-ministerial departments, headed by civil servants, may have inspection or regulatory functions.
Sourcing Strategy and Spend Analysis
- Spend analysis is crucial for identifying what an organization buys, who buys it, from whom, in what quantities, and at what price.
- It helps in identifying opportunities for savings and ranking suppliers for preferred status and supplier relationship management.
- Spend analysis enables better decision-making based on facts and helps in identifying off-contract purchases and potential contract savings.
- Data collection for spend analysis should be kept to a minimum to avoid creating time conflicts and bottlenecks.
- A sourcing strategy should include an analysis of supply markets and knowledge of prices and supplier costs.
- The supply positioning analysis involves assessing the importance and commercial supply risk of items purchased.
- The Kraljic matrix is used to categorize items based on their importance and commercial supply risk into strategic security, tactical profit, and tactical acquisition.
- Strategic security items are high-risk, low-spend items, while tactical profit items have low risk and plenty of suppliers.
- Tactical acquisition items have low spend and low risk, and strategies like bundling can make the buying process more efficient.
- The Pareto principle is used to calculate the value of spend and segment purchases into groups to focus procurement resources effectively.
- Spend analysis is essential for identifying opportunities to save money and make informed decisions based on facts rather than opinions or guesses.
- A clear plan for data collection is crucial for effective communication and project management in spend analysis.
Procurement Efficiency and Value for Money
- The procedure addresses the issue of being unable to award a contract for the final product or service to the developer without further competition.
- It involves successive phases reflecting the research and development stages with intermediate targets for payment.
- Payment is based on the degree of innovation and the sequence of research and innovation activities.
- The partnership can be terminated or reduced based on the option to end or reduce contracts, as set out in the tender documents.
- Contracts must be awarded based on the best price-quality ratio.
- Budget savings can be achieved through economy, efficiency, and effectiveness.
- Economy savings focus on minimizing the cost of purchases.
- Efficiency savings measure the relationship between cost and outcome.
- Effectiveness savings measure the relationship between actual and intended impacts of a service.
- An example of assessing value for money is a local authority's litter reduction program.
- Economy savings involve getting lower prices for the same level of service and quality.
- Procurement efficiency savings are not solely about getting the same thing for a lower price.
The Not-for-Profit and Third Sector: Key Points
- Not-for-profit organizations aim to create social wealth rather than monetary wealth and are independent of the public sector.
- Social enterprises use commercial principles to achieve social, environmental, or cultural objectives and reinvest their profits into furthering their nonprofit goals.
- Social enterprises exist in various sectors and contribute significantly to the UK economy, employing nearly a million people.
- Social enterprises must have a clear social or environmental mission, be value-driven, generate the majority of their income through trade, and be autonomous of state government.
- The merging of public services, social enterprises, and charities has led to the emergence of more social enterprises.
- Social Enterprise UK's chief executive notes that the future is hybrid, with public services, charities, and private enterprise starting to merge.
- There is a trend towards the formation of mutual companies, which are owned by employees and can be an alternative to outsourcing part of the public sector to the private sector.
- Mutuals can take various legal structures, such as charitable status or being a community interest company, and are initially single-contract organizations.
- Co-operatives, like mutuals, are owned by employees but differ in that employees in a co-operative must contribute money as share capital.
- Both mutuals and co-operatives have the right to share in any surplus profit the organization makes.
- The merging of public services, social enterprises, and businesses has led to the emergence of more social enterprises.
- The future is hybrid, with public services, charities, and private enterprise starting to merge, leading to the emergence of more social enterprises.
Understanding Accountability in Not-for-Profit and Third Sector Organizations
- Accountability is defined as holding actors responsible for their actions and reporting to recognized authorities.
- Four core components of accountability are transparency, answerability or justification, compliance, and enforcement.
- Accountability is about being accountable to oneself as well as to others.
- Not-for-profit and third sector organizations are held accountable to various stakeholders, including funders, recipients of services, and internal stakeholders.
- Accountability varies based on the type and size of the organization, with membership organizations, service providers, and policy networks having unique accountability structures.
- Finances in the not-for-profit sector are subject to scrutiny, with misappropriation of assets, corruption, and financial statement fraud being common forms of fraud.
- Governance in the not-for-profit and third sectors is responsible for providing strategic leadership, ensuring financial sustainability, and overseeing performance.
- Performance management in not-for-profit organizations presents challenges due to limited staff and the difficulty in demonstrating adequate performance.
- Defining the mission of a not-for-profit organization is more complex than in commercial organizations, as it may not be solely focused on maximizing shareholder value.
- Upward accountability involves transparency towards fund providers and patrons, while client accountability involves providing accountability to the recipients of the service.
- Internal accountability is important for organizations to demonstrate that they are delivering on their mission.
- The scope of accountability in not-for-profit and third sector organizations includes finances, governance, performance, and mission.
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Description
Test your knowledge of private sector organizations and global business with this quiz. Explore topics such as SME networking, global trade, multinational corporations, barriers to entry, profitability indicators, and the role of the private sector in driving economic growth.
