Business Ownership

• What is the definition of public sector organizations?

  Owned and controlled by the government
• Give an example of a public sector organization.

  NHS
• What are the aims and objectives of public sector organizations?

  1. Provide a service
  2. Improve accessibility to others
  3. Avoid wasteful duplication of resources
• What is Business Wales?

  A government-run information resource
• What type of support does Business Wales provide?

  Information, advice, and guidance for businesses
• What is the role of commercial banks for startups?

  Offer advice on business plans
• Who does The Prince's Trust work with?

  Individuals aged 18 to 30
• What does The Prince's Trust offer to young entrepreneurs?

  Training and mentoring support
• What is the British Chambers of Commerce?

  A source of advice for local businesses
• What are the key differences between the public and private sectors?

  • Public sector provides public goods
  • Private sector has profit incentives
  • Public sector is less affected by recession
  • Entrepreneurs create jobs in private sector
• What does unlimited liability mean?

  Owners are responsible for all business debts
• What is a sole trader?

  A business owned by one person
• What are the advantages of being a sole trader?

  • Keep all profits
  • Quick decision-making
  • Independence and flexibility
  • Easy to set up
• What are the disadvantages of being a sole trader?

  • Unlimited liability
  • More responsibility
  • Limited resources
• What is the definition of the private sector?

  Businesses run by private individuals
• What is a partnership?

  A business owned by 2 to 20 people
• What are the advantages of partnerships?

  • Raise more capital
  • Extra skills and expertise
  • Shared responsibility
  • Easy to set up
• What are the disadvantages of partnerships?

  • Potential for disagreements
  • Shared profits
  • Unlimited liability
• Why might a sole trader move to a partnership?

  • More capital for expansion
  • New skills and ideas
  • Shared workload
• What is a Deed of Partnership?

  • Legal document outlining partnership rules
  • Includes profit sharing and responsibilities
• What is limited liability?

  Owners are not responsible for business debts
• What is a dividend?

  Share of profits for shareholders
• What is the definition of charities?

  Organizations helping disadvantaged individuals
• What are social enterprises?

  • Businesses benefiting the community
  • Operate as charities or cooperatives
• What is a Private Limited Company (Ltd)?

  Owned by shareholders with limited liability
• What are the advantages of Private Limited Companies?

  • Limited liability
  • Continuity of business
  • More capital through shares
• What are the disadvantages of Private Limited Companies?

  • Time-consuming setup
  • Must disclose financial information
  • Shared profits with shareholders
• What is a Public Limited Company (plc)?

  Owned by shareholders with publicly traded shares
• What are the advantages of Public Limited Companies?

  • Limited liability
  • Continuity of business
  • More capital through stock exchange
• What are the disadvantages of Public Limited Companies?

  • High setup costs
  • Must publish accounts
  • Potential loss of control
• What are the key terms related to business activity?

  • Profit
  • Risk
  • Loss
  • Collaboration
  • Teamwork