Types of business organisation

Country S is in the middle of an economic boom. Over this period, business profits have risen and unemployment has decreased. The only difficulty is inflation. All Active is a private limited company. It operates 20 sport and fitness clubs in country S. The Managing Director stated: ‘This is a good time to grow by opening 5 more clubs. Choosing the correct locations matters. We will need to hire more employees.’ He is unsure whether it would benefit All Active to change into a public limited company.

May/June 2015

CC is reconsidering its business structure and exploring profit opportunities for Fizz Bomm.

May/June 2017

JCP is a small private limited company. The paper-making business began 170 years ago. JCP has numerous stakeholder groups, among them 50 employees. The Managing Director stated: ‘JCP is continually creating new products. We now supply products to the airline industry as well as producing paper.’ JCP sells its products to 60 countries.

May/June 2021

Tom plans to resign from his job and become an entrepreneur. He and his sister intend to set up a window cleaning business. Tom has been warned that new businesses face a higher chance of failure than well-established businesses. He must decide whether a partnership would be a suitable form of business organisation for the new venture. He has worked out that the business will need $700 as start-up capital. Tom understands that every choice he makes involves an opportunity cost.

May/June 2022

Explain four characteristics that are needed for an entrepreneur to achieve success.

May/June 2023

Brendan aims to become a successful entrepreneur. He plans to open a flower shop with government support. Brendan’s brother has offered to join him in a business partnership. Brendan recognises that a new business needs an appropriate pricing method. He has already worked out ways the business can add value. Brendan wants to know how an economic boom could influence his business.

May/June 2025

Explain two advantages and two disadvantages for Philip of converting PF from a sole trader business into a private limited company.

May/June 2025

Tebo has recently been made redundant from his job as a car mechanic. He is thinking about starting his own business. Although he has no management experience, he knows that managing cash flow will matter to the success of the business. Tebo is considering whether to apply for a FIXIT franchise. This franchise would cost $15000$, which would use up all of his savings. FIXIT is a car repair franchise, and there are 36 franchises.

Oct/Nov 2015

Moeen and Ali are intending to open a small luxury hotel in the centre of a city in country R. They have a budget of $30000 to cover all costs. After investigating different forms of business organisation, as shown in Table 2, Moeen believes the hotel ought to be a private limited company. If the business is going to succeed, Ali understands that choosing the correct location will be important. He cannot decide whether to recruit full-time workers or part-time workers.

Oct/Nov 2016

Identify and explain one advantage and one disadvantage to Ghaziz and Jasmin of operating as a business partnership.

Oct/Nov 2016

FTT is a social enterprise. It sells its high-quality fair-trade coffee beans to retailers in country P. Acting ethically is important to FTT. It gives local people information about micro-finance and skills so that they can begin growing beans for FTT to sell on their behalf. FTT plans to start exporting coffee beans because its market research shows that demand for coffee is rising in other countries. FTT’s managers will need to select a suitable pricing method for selling the coffee beans in those overseas markets.

Oct/Nov 2018

Identify and explain two benefits and two drawbacks of GT as a public limited company.

Oct/Nov 2018

GOP is an oil producer located in country X. It is a public corporation. GOP intends to construct a 200 km pipeline across the country and will use retained profits to finance it. The pipeline will need planning permission from the Government. Environmental pressure groups are concerned. A spokesperson for GOP said: ‘GOP’s objectives differ from those of private sector businesses. This pipeline will generate 2000 skilled construction jobs and lessen the need for other businesses to import oil.’

Oct/Nov 2019

Explain two reasons that could keep PPE small.

Oct/Nov 2021

Explain two advantages and two disadvantages that PH has because it is a public limited company.

Oct/Nov 2023

Explain two advantages and two disadvantages that a business has when it operates as a private limited company.

Oct/Nov 2025