Chapter 2, Business `Sectors and Types of Business Flashcards Preview

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Flashcards in Chapter 2, Business `Sectors and Types of Business Deck (11)
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1
Q

Chain of Production

A

stages a product passes through until it reaches the final consumer

2
Q

Primary Sector

A

Extractive industries. Farming, forestry, fishing, and mining (oil and gas)

3
Q

Secondary Sector

A

Manufacturing. turning raw materials into semi-finished and finished products. Also includes construction industry

4
Q

Tertiary Sector

A

The output of services. retailing, banking and transportation, as well as leisure industries.

5
Q

Deindustrialisation

A

the decline In the second sectors of the economy

6
Q

Private Sector

A

a business owned by private individuals usually for profit

7
Q

Public Sector

A

business/ organization owned or run by the local government to provide a service, not profit

8
Q

Advantages of a Sole Trader

A
  • few legal requirements
  • quick decision making
  • keeps all profit
  • cannot be taken over
  • the financial state of business can be kept private
9
Q

Disadvantages of a Sole Trader

A
  • unlimited liability
  • perform all business functions
  • limits growth
  • overworking
10
Q

Private Limited Company

A
  • ends with ‘Limited’ or ‘Ltd’
  • cannot sell shares on the stock market
  • no minimum share capital
  • Shareholders can be Directors
  • one vote per person
11
Q

Public Limited Company

A
  • ends with ‘plc’
  • can sell shares on the stock market
  • can be involuntarily be taken over by shareholders
  • minimum share capital of £50,000
  • shareholders appoint a ‘Director
  • Shareholders receive Report and Accounts yearly
  • one vote per share