IB Business Management Unit 1.2(2024)

Define, Define, Define!

100

This sector is made up of businesses owned and controlled by individuals or groups of individuals.

What is Private Sector?

200

Business organizations that operate in this sector consist of those controlled by a regional and/or national government, with the main aim being to provide essential goods and services for the general public.

What is "public sector "?

300

An individual who is the single owner of the business.

Who is a "Sole Trader"?

OR "Sole Proprietor"

400

Any organization that has aims other than making profit

What are 'non-profit organizations'?

We don't got cash.

100

Legal entities organized and operated for a collective or social benefit rather than an entity that operates as a business that primarily aims to generate a profit for its owners or shareholders.

What is "Non-Profit "?

200

Non-profit social enterprise that operates in the private sector of the economy.

Non-governmental organization

NGO

300

This is a non-profit social enterprise works to create a peaceful and sustainable world where people live in harmony with nature

What is "friends of the earth international "?

400

An advantages of non-profit social enterprises is they are exempt from paying corporate and profits taxes?

True

We're solely together

100

Name two disadvantages to sole traders.

possible answers:

• Unlimited liability – all of the owner’s assets are potentially at risk
• Often faces intense competition from bigger firms, e.g. food retailing
• Owner is unable to specialize in areas of the business that are most interesting – they are responsible for all aspects of management
• Difficult to raise additional capital
• Long hours often necessary to make business pay
• Lack of continuity- as the business does not have separate legal status, when the owner dies the business ends too.

200

If the owner is in debt, and his business is failing, the government has the right to take his personal possessions and properties to pay off the debt.

What is an "unincorporated business"?

300

A business is formed by two or more people to carry a business together. They share capital investment, and usually, shared responsibility.

What is a partnership?

400

When the death of an owner or director does not lead to the company’s break-up or dissolution.

What is "Continuity"?