Unit 1 Buissness Enviroment

• What is a centralized structure in an organization?

  An organizational model where decision-making power is concentrated at the top levels of the hierarchy.
• What is a decentralized structure in an organization?

  An organizational model where decision-making power is distributed among various levels or departments.
• Optimal


  The most efficient, effective, or desirable choice or solution.
• Inefficient Use of Resources


  The use of resources in a way that does not achieve the best possible outcome, often resulting in waste or unnecessary expenditure.
• Ineffective Resource Utilization


  The failure to produce the desired results or outcomes despite the use of resources, often due to poor planning, execution, or management.
• Poor Resource Distribution


  The allocation or distribution of resources in a way that does not benefit the organization, often resulting in unequal or unfair distribution of resources.
• Suboptimal Resource Allocation


  A situation where resources are not distributed or utilized in the most ideal way to achieve the organization's goals, resulting in inefficient use, ineffective utilization, and poor distribution.
• What is a sole proprietorship?


  A sole proprietorship is a business owned and run by one individual.
• What distinguishes a sole proprietorship from other business structures?


  There is no legal distinction between the owner and the business.
• What is one key feature of a sole proprietorship regarding profits?


  All profits go directly to the owner.
• How is business income reported in a sole proprietorship?


  Business income is reported on the owner's personal tax return.
• If a freelance graphic designer operates under their own name, what type of business ownership do they have?


  Sole proprietorship.
• What are the two main types of partnerships?


  General partnership and limited partnership.
• What is a key feature of partnerships regarding decision-making?


  Partners share ownership and decision-making responsibilities.
• In a general partnership, how is liability shared among partners?


  All partners share equal responsibility and liability.
• If two friends start a small café together, what type of business structure are they likely using?


  General partnership.
• How does an LLC handle taxation?


  LLCs typically have pass-through taxation by default.
• What does "limited liability" mean for LLC members?


  Members are not personally responsible for the LLC's debts beyond their investment.
• What is a key advantage of an LLC compared to a sole proprietorship?


  An LLC provides limited liability protection to its owners.
• What is a Limited Liability Company (LLC)?


  An LLC is a hybrid business structure that combines elements of both partnerships and corporations.
• What is a corporation?


  A corporation is a legal entity that is separate and distinct from its owners.
• If a group of property investors forms a business to manage rental properties, what type of business structure are they likely using?

  Limited Liability Company (LLC).
• What is a key feature of corporations regarding liability?

  Corporations provide limited liability for shareholders.
• How can corporations raise capital?

  Corporations can raise capital by selling stocks.
• If a large public company like Apple is structured as a corporation, what type of corporation is it likely to be?


  1. Corporation.
• What is double taxation in the context of corporations?


  Double taxation means corporate profits are taxed, and then dividends are taxed when distributed to shareholders.
• What is a cooperative?


  A cooperative is a business owned and operated by a group of individuals for their mutual benefit.
• How are decisions typically made in a cooperative?


  Decisions are made democratically, with each member having one vote.
• If a group of residents jointly owns their building, what type of business structure are they likely using?

  Housing cooperative.
• If a group of farmers pools resources to form a business, what type of business structure are they likely using?

  Agricultural cooperative.
• How are profits typically distributed in a cooperative?


  Profits are distributed based on members' use of services.
• What is a key characteristic that distinguishes a cooperative from other business structures?


  Cooperatives are owned and operated for the mutual benefit of members who use its services.
• Are shares of private limited companies publicly traded?


  No, shares are not publicly traded.
• What are private limited companies (Ltd)?


  A type of business structure where ownership is divided into shares.
• What is a restriction on transferring shares in a private limited company?


  Shares cannot be easily sold or transferred to just anyone.
• What is an example of a private limited company?


  A local family-owned bakery.
• What is a key feature of public limited companies regarding share transfer?


  Shares are freely transferable.
• What is a key advantage of public limited companies in terms of capital?


  They can raise capital more easily through share issues.
• What is a partnership?


  A partnership is a business structure where two or more individuals share ownership and responsibility.
• If a group of property investors forms a business to manage rental properties, what type of business structure are they likely using?

  Limited Liability Company (LLC).