2.1.2. Types of private and public sector enterprises
A subsection of Commerce, 7100, through 2. Commercial operations
Listing 10 of 103 questions
[T Bing Ltd is a public limited company which employs a large number of people. It operates a wholesale business serving small-scale retailers in several large cities. Explain two characteristics of a public limited company. Bing Ltd offers credit to its customers (the small-scale retailers). Explain why Bing Ltd offers credit to them. Name and explain three other services Bing Ltd might offer to these small-scale retailers. Bing Ltd has insured against the following business risks: PUBLIC LIABILITY EMPLOYER’S LIABILITY CONSEQUENTIAL LOSS Is cover for these business risks needed by Bing Ltd? Give reasons for your answer.
7100_s05_qp_2
THEORY
2005
Paper 2, Variant 0
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For Examiner's Use Alina and Ali are accountants and are in partnership. Explain two advantages to Alina and Ali of being in partnership. Advantage 1 Advantage 2 How are profits distributed in a partnership? Alina and Ali wish to expand their business. Anna is joining the partnership in the role of a sleeping partner. What effects will this change have on the partnership? For Examiner's Use Tom is the major shareholder and managing director of a family farming business operating as a private limited company. Is a private limited company a better form of business ownership for Tom’s business than being in a partnership? Give reasons for your opinion. Tom wishes to open a farm shop on the farm. Why should he use retained profits rather than borrow money for this project? Why should he use trade credit rather than an overdraft for purchasing some of the supplies needed for the shop?
7100_s09_qp_2
THEORY
2009
Paper 2, Variant 0
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Sati Satellite Communication Ltd is a public limited company, trading in a number of markets. It sells communication systems and satellite dishes. Many of its customers are private limited companies. State two characteristics of public limited companies that do not apply to private limited companies. State two characteristics of private limited companies that do not apply to public limited companies. ‘The shareholders of both public limited companies and private limited companies have limited liability’. What does this statement mean? Explain the benefits of trading in a number of markets. Sati Satellite Communication Ltd has seen a fall in sales and profits over the last two years. State three possible reasons for the fall in sales and profits over the last two years. The directors of the company are considering the following options: • increasing advertising and sales promotion • offering a wider range of products. What course of action would you recommend to the directors? Give reasons for your recommendation.
7100_s10_qp_23
THEORY
2010
Paper 2, Variant 3
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Questions Discovered
103