1.2 Comprehension questions

1.2 Types of organization – Comprehension Questions

Read the text on InThinking Business Management and answer the questions that follow.

Please note there are no answers provided on this website for the comprehension questions. The intention is for students to use these to guide their revision. They can refer to the relevant section of the website for the content coverage of the syllabus.

Distinction between the private and the public sectors (AO2)
  1. What is the private sector of the economy?
  2. Provide three examples of businesses operating in the private sector.
  3. What is the public sector of the economy?
  4. Provide three examples of businesses operating in the public sector.
The main features of the following types of for-profit (commercial) organizations (AO3)
  1. What is a sole trader?
  2. What is meant by unlimited liability?
  3. Give three advantages of sole traders.
  4. Give three disadvantages of sole traders.
  5. What are partnerships?
  6. What is an ordinary partnership?
  7. What is a Deed of Partnership?
  8. What are silent partners?
  9. Give two advantages of partnerships.
  10. Give two disadvantages of partnerships.
  11. What are companies (corporations)?
  12. What is meant by limited liability?
  13. What is the difference between private limited companies and public limited companies?
  14. What is a joint-stock company?
  15. Who are shareholders?
  16. What are the main features of private limited companies?
  17. What are the main features of public limited companies?
  18. What is a stock exchange (or stock market)?
  19. What is an initial public offer (IPO)?
  20. Why are limited liability companies required to publish their final accounts each year?
  21. What are three advantages of private limited companies?
  22. What are three disadvantages of private limited companies?
  23. What are two advantages of public limited companies?
  24. What are two disadvantages of public limited companies?
Types of for-profit social enterprises (AO3)
  1. What is a for-profit social enterprise?
  2. What are the three main types of for-profit social enterprises?
  3. What are cooperatives?
  4. What are the main features of cooperatives?
  5. Give three advantages of cooperatives.
  6. Give three disadvantages of cooperatives.
  7. What are microfinance providers?
  8. How have microfinance providers helped female entrepreneurs in low-income countries?
  9. Give two advantages of microfinance providers.
  10. Give two disadvantages of microfinance providers.
  11. What are public-private partnerships (PPP)?
  12. Give three advantages of public-private partnerships.
  13. Give three disadvantages of public-private partnerships.
Types of non-profit social enterprises (AO3)
  1. What are non-profit social enterprises?
  2. Give two advantages of non-profit social enterprises.
  3. Give two disadvantages of non-profit social enterprises.
  4. What are the two main types of non-profit social enterprises?
  5. What is are non-governmental organizations (NGOs)?
  6. How are NGOs usually funded?
  7. What are charities?
  8. What are the main sources of finance for charities?

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