6675077
Description
Flashcards by Nisha Sanghera, updated more than 1 year ago
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Created by Nisha Sanghera
over 7 years ago
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| Question | Answer |
| What are the sectors of industry? | Primary, secondary, tertiary and quaternary |
| What businesses are involved in the primary sector? | Businesses that exploit or extract natural resources |
| Give 2 examples of businesses in the primary sector? | Farming Fishing Coal mining Forestry Oil exploration |
| What businesses are involved in the secondary sector? | Businesses involved in manufacturing or construction |
| What businesses are involved in the tertiary sector? | Business that provide a service rather than a physical good |
| What does the quaternary sector consist of? | Industries that provide specific information services |
| Which sector of industry provides most jobs for the Scottish economy? | The tertiary and quaternary sectors with employing 76% of the workforce |
| What are they main causes of the trend employment moving from primary and secondary sectors to the tertiary and quaternary? | -Increase competition from abroad where products can be produced more cheaply -changes in consumer lifestyle people are wealthier and increase in free time so higher demand for leisure services -lack of investment in manufacturing -many primary resources have become exhausted |
| The capital of a Ltd is divided into what? | Shares with each shareholder owning a number of these shares each |
| What is the minimum number of shareholders must a Ltd have? | 2 |
| Who usually manages a Ltd? | A board of directors (with a minimum of one director and one company secretary) |
| Can a private limited company sell shares to the public on the stock market? | No which makes it difficult for large amounts of finance to be raised |
| Give 3 examples of successful private limited company's? | Innocent Ltd Arnold Clark Ltd Tunnock's Ltd Baxters Ltd |
| What must you do to become a private limited company? | Register with the registrar of companies and sign 2 legal documents |
| What are the names of the legal documents you must sign to become a limited company? | A memorandum of associations Articles of association |
| What does the 2 legal documents outline? | The company's details The responsibilities of directors Shareholders rights |
| What are the main objectives of a private limited company? | Profit maximisation Sales maximisation Increase market share Developing a good reputation |
| How are private limited company's financed? | Applying for government grants Issuing shares Borrowing loans Using retained profits from previous years |
| Shareholders of Ltd have limited liability what does this mean? | Shareholders do not risk personal bankruptcy if the company fails |
| 3 advantages of operating as a Ltd? | -More fiancé can be raised from shareholders -shareholders/directors bring a degree of expertise to the business -control of the company cannot be lost to outsiders |
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