Business Quiz 1.2, 1.4, 1.5

Public Sector

The sector of the economy that is controlled by a regional and/or national government and the main aim being to provide essential goods and services for the general public including education, emergency and health care services.

Cooperatives

They are for-profit social enterprises that are owned and managed by their members. Many are registered as limited liability companies and strive to provide services to their members.

Limited Liability

The legal status of a business enables its shareholders not to be liable for more than the original amount of money invested in the business. 

NGOs

Legal entities organized and operated for a collective or social benefit rather than an entity that operates to generate a profit for its owners or shareholders. Operates independently from the government.

Social Enterprises 

Business entities that generate revenue just like any business organization, but hold community objectives for the wellbeing of others in society, rather than primarily aiming to earn profit for their owners

Internal Stakeholders

Individuals or groups who are part of the organization including managers, employees, directors and shareholders.

Pressure/Special-Interest Groups

Organizations consisting of like-minded individuals who come together for a common cause or concern. Set up as legal entities to pursue specialist interests.

Stakeholder Conflict

Refers to the mutually exclusive and incompatible interests of different stakeholder groups. If not resolved, it can lead to prolonged disagreements in the workplace.

Acquisition

A form of external growth which consists of a corporate transaction where one company purchases a portion or all of another companys shares or assets which can help a company gain a competitive edge.

Franchise

Agreement where a business (franchisor) allows another party (franchisee) to use its brand name, business model, and products in exchange for fees and royalties.

Financial Economies of Scale

Banks and other lenders charge lower interest to larger businesses for overdrafts, loans and mortgages because they represent lower risk and tend to be more financially stable. 

Joint Venture

A growth strategy where two or more businesses agree to work together on a specific project by combining resources, sharing risks, and sharing profits, while remaining separate independent companies.

Marketing Economies of Scale

Larger businesses can spread their fixed costs of marketing by promoting and advertising a greater range of brands and products.

Technical Economies of Scale (mass production techniques)

Cost savings by greater use of large-scale mechanical processes and specialist machinery 

Diseconomies of Scale

Occurs if the business grows beyond its ability to operate efficiently, resulting in higher average costs (CPU).