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41 Cards in this Set
- Front
- Back
- 3rd side (hint)
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List the forms of businesses in the private sector |
Sole trader
Partnership
Corporatives
Joint Stock Conglomerate
Franchise
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SPCCJF |
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3 features of Sole Trader Business |
Easy and cheap
Financed by the owner
Provides a personal service |
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Advantages of the Sole Trader business |
Easily formed The account only to themselves All profits are theirs |
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Disadvantages of the sole trader business |
Owner bears all risks and losses Hard to get bank loans Unlimited liability |
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Multinational Corporation definition |
Owns, controls, operates and carries out production in several countries simoustaniouly |
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Give 3 examples of MNC |
Digicel Flow AT and T |
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List 3 advantages of MNC |
Creates employment Valuable source of taxation and foreign exchange Provides foreign expertise |
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Disadvantages of MNC |
May change a countries culture May harm the environment Welfare of the economy is not a concern |
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What is a partnership? |
A legal agreement between 2 to 20 individuals |
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Give 3 features of a Partnership |
Unlimited liability Ends with a change in members Can exist without a written agreement |
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Give 3 advantages of a partnership |
Easily made More capital Specialization in management |
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Disadvantages of partnership |
All partners stand to lose by 1 bad choice Limited capital Unlimited liability |
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I am a business that is owned and operated by its members. Who am I? |
Cooperative |
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List 3 features of a cooperative |
Guaranteed market No profiteering Bulk buying is available to it's members |
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List 3 disadvantages of cooperatives |
Management may be poor Limited capital Unable to provide professionals |
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I am a group of companies that operate in different sectors. Who am I? |
A conglomerate |
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Give 3 advantages of a Conglomerate |
Strength and security in numbers Economies of sale Security from holding companies |
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List 3 disadvantages of a Conglomerate |
Analysis is hard Friction between authority Managers may resent outside control |
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I have limited liabilities. Who am I? |
Joint Stock Company |
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List the 3 documents a Joint Stock Company. |
Memorandum of Association Articles of Association Certificate of Incorporation |
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I government the external relationships of a company. Who am I? |
Memorandum of Association |
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I govern the internal relationships of a company. Who am I? |
Articles of Association |
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What is a Certificate of Incorporation? |
Tells that a company is registered and now exists as a separate, legal entity from it's owners |
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Give 3 features of a Joint Stock Company |
Limited liabilities Easy to raise capital with little risks Continuity |
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My rights are sold, allowing another identical store to open elsewhere. Who am I? |
A Franchise |
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List 2 advantages of a Franchise |
Enjoys a greater percentage of the profits Has control of marketing Has control of promotional network |
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Give the disadvantage of a Franchise |
The owner must meet any losses incurred |
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Give 3 examples of a Franchise |
KFC Subway McDonald |
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I am formed to only have shares in other companies. Who am I? |
A Holding Company |
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List the 2 types of Joint Stock Companies |
Public Limited Company Private Limited Company |
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Give 3 features of a Private limited Company |
Limited liability Is a legal entity Directors are elected |
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Give 3 advantages of a private limited Company |
Privacy Limited liability Continuity |
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Give 3 disadvantages of private limited Company |
Shares are not freely transfered Limited capital Slow growth |
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Alongside a private limited Company, what else must a public Limited Company have? |
A Certificate of Trading |
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3 advantages of a public Limited Company |
Specalize can be hired Limited liability Access to capital |
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Give 3 disadvantages of a public Limited Company |
Objectives can differ Over expansion Works may feel left out from decision making |
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I am owned by the state on behalf of the people. Who am I? |
A Public Enterprise |
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Define a municipal authority Enterprise |
They undertake local concerns |
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I manage state owned enterprises. Who am I? |
A state corporation |
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Define privatisation |
The transfer of ownership from a stated owned company to a private enterprise |
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Define nationalization |
The transfer of a private Enterprise to a state owned company |
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