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What distinguishes public sector companies from private sector companies in terms of ownership?
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Public sector companies are owned by the government, while private sector companies are owned by individuals or groups.
What is the main advantage of customer loyalty for social enterprises?
Customer loyalty stems from the 'feel-good factor' associated with supporting socially and ecologically conscious businesses, enhancing brand reputation.
Discuss the impact of promoting challenges on social enterprises.
Promoting challenges can make it difficult for social enterprises to effectively target and reach their audience, impacting growth and mission fulfillment.
Explain the primary purpose of public sector organizations.
The primary purpose of public sector organizations is to provide public services rather than focusing on profit distribution.
What is the significance of limited liability in the context of companies?
Limited liability means that the personal assets of shareholders are protected; they are only liable for the amount they invested in the company.
Describe the main characteristic of sole traders regarding liability.
Sole traders have unlimited liability, meaning they are personally responsible for all business debts.
How does the IPO process affect the structure and operation of a publicly held company?
The IPO (Initial Public Offering) process allows a company to raise capital by offering shares to the public, increasing its accountability and transparency.
Identify two challenges faced by social enterprises in maintaining economic sustainability.
Social enterprises often face high compliance costs due to ethical standards and difficulties in decision-making because of transparency requirements.
What makes NGOs distinct from other types of social enterprises?
NGOs are independent from government control and focus on addressing public issues, operating without the primary goal of making profits.
In what way can public perception be a con for non-profit social enterprises?
Public perception can lead to expectations for free social goods, which can challenge the financial sustainability of non-profit social enterprises.
What is a partnership agreement, and why is it important?
A partnership agreement outlines the rights and responsibilities of partners in a partnership, ensuring clarity and preventing disputes.
What are some challenges faced by public sector organizations in terms of efficiency?
Public sector organizations are often less efficient, can be monopolistic, and less innovative compared to private sector organizations.
How does the decision-making process in partnerships differ from that in sole trader businesses?
Decision-making in partnerships is shared and can be slower due to the involvement of multiple partners.
Compare the financial transparency requirements between privately held companies and publicly held companies.
Publicly held companies have higher financial transparency requirements as they must publicly disclose their financials, unlike privately held companies.
What role do cooperatives play as a type of for-profit social enterprise?
Cooperatives are owned and operated by their members, and they exist to benefit those members through shared ownership and profits.
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