As promised, he are some revision questions before you exam.

You don’t need to write a lot for the

answers to these questions. Just bullet points. You can find all the answers in your online books. We will
go through the answers in class in the first lesson of the week.

Chapter 4

1. What is the definition of a Private limited company?

- Private limited company are businessed are owned by shareholders but they cannot sell
shares to the public.

2. What is the definition of a Public limited company?

- Public limited company are owned by shareholders, but they can sell shares to the public
and their shares are tradeable on the Stock Exchange.

3. What is the main difference between the public and private limited company?
- So, for Private Limited Company they cannot sell shares to the public but Public Limited
Company they can, and their shares are tradeable on the Stock Exchange.
4. Identify 2 advantages and 2 disadvantages of a private limited company.
- Ad:
1) They have limited liability for shareholders.
2) Continuity.
- Dis:
1) Cannot sell share to the public.
2) Not easy to transfer shares.
5. Identify 2 advantages and 2 disadvantages of a public limited company
- Ad:
1) They have limited liability for shareholders.
2) There is no restriction on the buying, selling or transfer of shares.
- Dis:
1) Legal formality
2) Selling shares to the public is expensive.
6. What are 2 advantages and 2 disadvantages of opening a franchise for a franchisor?
Ad:
1) The franchisee needs to pay for the license of the franchisor.
2) The franchise can still manage all the new outlets.
Dis:
1) 1 poor management outlet of the franchisor could lead to a bad reputation for the whole
business.
2) The franchisee keeps profits from the outlet.

Chapter 5

1. Identify 2 internal stakeholders.

 - Owner
- Employees
2. Identify 2 external stakeholder.
- Customer
- Gorverment
3. Identify 3 ways growth is important to a business.
- Make jobs more secure if the business is larger.
- increase the salaries and status of managers as the business expands.
- obtain a higher market share from growth in sales.
4. Identify 3 reason why increased market share is important.
- good publicity, as it could claim that it is becoming 'the most popular.
- increased influence over suppliers, as they will be very keen to sell to a business that is
becoming relatively larger than others in the industry.
- increased influence over customers (for example, in setting prices).
5. What are the 3 objectives of a social enterprise?
- Social: to provide jobs and support for disadvantaged groups in society, such
as the disabled or homeless.
- Environmental: to protect the environment.
- Financial: to make a profit to invest back into the social enterprise to expand
the social work that it performs.

Chapter 6

1. Identify the three theories of motivation.

- Taylor Money is the main motivator
- Maslow Hierarchy of needs
- Herzberg 'Hygiene' and 'motivation'
2. Identify three financial and 3 non-financial methods of motivation.
1) Non-financial :
- Job rotation
- Job enrichment
- Training
2) Financial :
- Wages
- Time rate
- Piece rate

3. Identify 3 benefits of a well-motivated workforce.

- high output per worker - which helps to keep costs low and increase profits.
- low labour turnover - a loyal workforce - this reduces the cost of recruiting
workers who leave.
- willingness to accept change, for example, new methods of working.