Podcast
Questions and Answers
What is a Public Limited Company (Plc) and how does it benefit from being publicly traded?
What is a Public Limited Company (Plc) and how does it benefit from being publicly traded?
A Public Limited Company (Plc) is a business whose shares are traded publicly on the stock exchange, which makes it easier to raise large amounts of money.
List two main goals of Corporate Social Responsibility (CSR) statements.
List two main goals of Corporate Social Responsibility (CSR) statements.
The main goals of CSR statements include reducing environmental damage and supporting community projects.
Identify three key attributes of successful entrepreneurs.
Identify three key attributes of successful entrepreneurs.
Three key attributes of successful entrepreneurs are being innovative, risk-takers, and resilient.
What is one advantage and one disadvantage of being a franchisee?
What is one advantage and one disadvantage of being a franchisee?
Why might a company prioritize fair treatment of employees in its CSR statements?
Why might a company prioritize fair treatment of employees in its CSR statements?
What is the main advantage of being a sole trader?
What is the main advantage of being a sole trader?
How does a Private Limited Company (Ltd) protect its owners?
How does a Private Limited Company (Ltd) protect its owners?
What is trade credit and how does it benefit businesses?
What is trade credit and how does it benefit businesses?
Differentiate between needs and wants with examples.
Differentiate between needs and wants with examples.
What is the difference between limited and unlimited liability?
What is the difference between limited and unlimited liability?
What activities are included in the primary sector?
What activities are included in the primary sector?
What is the major difference between a Private Limited Company (Ltd) and a Public Limited Company (Plc)?
What is the major difference between a Private Limited Company (Ltd) and a Public Limited Company (Plc)?
Identify two internal and two external stakeholders of a business.
Identify two internal and two external stakeholders of a business.
Flashcards
Sole Trader
Sole Trader
A business owned and operated by one person who bears full responsibility for all debts and profits.
Partnership
Partnership
Two or more individuals who share ownership, responsibilities, and profits. They're also jointly liable for all debts.
Private Limited Company (Ltd)
Private Limited Company (Ltd)
A business owned by a small number of people, usually family members, with limited liability. They can't sell shares to the public.
Public Limited Company (Plc)
Public Limited Company (Plc)
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External Finance
External Finance
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Limited Liability
Limited Liability
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Unlimited Liability
Unlimited Liability
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Primary Sector
Primary Sector
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Corporate Social Responsibility (CSR)
Corporate Social Responsibility (CSR)
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Franchisee
Franchisee
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Risk-taker
Risk-taker
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Resilient
Resilient
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Study Notes
Types of Businesses
- Sole Trader: One owner, full control, but personal liability for debts. Examples include shopkeepers, photographers, and plumbers.
- Partnership: Two or more owners, shared responsibilities and profits, personal liability for debts.
- Private Limited Company (Ltd): Owned by a small group (individuals or families). Owners’ personal assets are protected, cannot sell shares publicly. Examples include restaurants and clothing stores.
- Public Limited Company (Plc): Can sell shares publicly on stock markets. Owners’ personal assets are protected; generally larger companies. Examples include Apple, Microsoft, and Huawei.
External Finance Sources
- Bank Loans: Borrowed from banks, repaid with interest.
- Overdraft: Spending beyond account balance up to a defined limit.
- Trade Credit: Buying goods, paying later.
- Leasing: Renting equipment, or machinery instead of purchasing.
- Selling Shares: Raising capital by selling ownership (applicable to Ltds and Plcs).
Stakeholders
- Internal Stakeholders: Employees, managers, owners.
- External Stakeholders: Customers, suppliers, government, community, banks.
Needs vs. Wants
- Needs: Essential for survival (food, water, shelter).
- Wants: Desired but non-essential things (phones, holidays).
Liability
- Limited Liability: Owners' personal assets are protected; only investment is at risk (e.g., Ltds, Plcs).
- Unlimited Liability: Owners are fully responsible for all debts; personal assets can be used to pay debts (e.g., sole traders, partnerships).
Economic Sectors
- Primary Sector: Extracting raw materials (farming, mining, fishing, forestry).
- Secondary Sector: Manufacturing goods (factories, construction).
- Tertiary Sector: Providing services (retail, education, healthcare, transport).
Company Structures
- Private Limited Company (Ltd): Shares sold privately, tighter ownership control.
- Public Limited Company (Plc): Shares traded publicly, easier to raise large sums of capital.
Corporate Social Responsibility (CSR)
- CSR: Companies committing to ethical behavior and contributing to society:
- Reducing environmental damage.
- Supporting community projects.
- Ensuring fair worker treatment.
Entrepreneurial Attributes
- Innovative: Creative with ideas.
- Risk-taker: Willing to take calculated risks.
- Resilient: Persistence through challenges.
- Good Decision-Maker: Quick and effective judgment.
Franchising
- Franchisee Advantages: Established brand, easier customer attraction, support from franchisor (training, marketing).
- Franchisee Disadvantages: Payment of fees and profit sharing, limited business decision control.
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Description
This quiz covers the different types of businesses, including sole traders, partnerships, private and public limited companies. Additionally, it explores external finance sources available to businesses such as bank loans, overdrafts, trade credit, and leasing. Test your knowledge of these fundamental concepts in business!
