Understanding Business Organizations

What is the primary difference between a public sector organization and a public limited company?

• Public sector organizations have limited liability, while public limited companies have unlimited liability.

• Public sector organizations are financed by entrepreneurs, while public limited companies are financed by the government.

• Public sector organizations are owned by the government, while public limited companies are listed on the stock exchange.

• Public sector organizations are always national, while public limited companies are always local.

Which of the following is an example of a public sector organization?

• John Lewis

• BBC

• River Island

• Dyson

What characterizes unincorporated businesses in the private sector?

• They have limited liability.

• They are listed on the stock exchange.

• They are owned by the government.

• They have unlimited liability.

Which of the following is a characteristic of a private limited company?

• It is sometimes referred to as LTD.

• It has unlimited liability.

• It is listed on the stock exchange.

• It is owned by the government.

What is a common type of unincorporated business in the UK?

• Franchise

• Nationalized industry

• Sole trader

• Public limited company

Which of the following is an example of a public limited company?

• KFC

• Papa John's

• NHS

• Morrisons

What is a franchise?

• A type of unincorporated business

• A type of public sector organization

• A government-owned industry

• A method of business expansion

Which of the following is an example of a franchise operating in the UK?

• Met Office

• BBC

• RBS

• Krispy Kreme