Chapter 4 Types of Business



Chapter 4 Types of Business

1. A/an __________________ machine is an example of electronic communication used to send diagrams and text.

2. A/an __________________ is used to request payment for goods.

3. The system of ____________________ control ensures that all products are of a high standard.

4. The main feature of a/an___________________ business is that is owned by one person.

5. One of the main disadvantages of a sole trader is that he/ she has ____________________ liability.

6. A tour operator taking over a chain of travel agents is an example of _______________________ integration.

7. In a Private Limited Company ______________________ cannot be advertised for sale to the public.

8. The merging of two activities at the same level of production is known as __________________ integration.

9. Match the following descriptions with the appropriate terms.

i) The purchase of a group of garages by a car manufacturer is an example of _________________ expansion.

ii) The merger of two supermarkets is an example of ____________________ expansion.

iii) The merger of a Turkey farm with a carpet company is an example of ___________________.

Lateral Vertical Horizontal

10. A partnership has a maximum of ___________________ partners.

11. The security of limited liability could encourage a person to ___________________ in a private limited company.

12. The purchase of a coffee plantation by a coffee distributor is known as ____________________ integration.

13. Tasleem and Ahmed have been approached by a retail outlet.

The retailer would like to large with their business and sell their product exclusively.

i) Outline and explain TWO benefits Tasleem and Ahmed would achieve from such a merger.

ii) What is this type of integration called?\

14. Study the diagram below and match the organisations to the sector of business.

Business Organisation

Private Sector Public Sector

i) iv)

ii) v)

iii) vi)

Public corporation Public Limited Company Sole Trader

Local Authority/government Partnership Central government

15. Complete the table below from the terms provided. Use each term only ONCE.

2 –20 Public Limited Company

Private Shareholders 1 –2 No maximum

1 Person Partnership

|Type of Business | Ownership (min max) | Finance |

| | | |

|Sole Trader |i) |Own savings,loans |

| | | |

| | | |

|ii) |iii) |Own savings,loans |

| | | |

| | | |

| | | |

|Private Ltd Co |1 –2 No maximum |iv) |

| | | |

|v) |vi) |Public Shareholder |

16. Explain the meaning of a multi-national company.

17. Give One reason why a multi-national might not be of benefit to the country where it is located.

18. Sanchez and Fernandez is a Limited Company. Explain the meaning of Limited Liability.

................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download