1.2 Continued

Question 1

What is a company?

Answer 1

• A business owned by shareholders
• companies sometimes called Corporations

Question 2

What are three features of a company?

Answer 2

• Companies are Incorporated businesses
• Limited liability
• Set up is complicated & expensive

Question 3

What is a FOR-PROFIT social enterprise?

Answer 3

• A business with mainly social objectives that reinvests most of its profits into benefiting society rather than maximizing returns to owners

Question 4

What is a COOPERATIVE(3)?

Answer 4

• A group of people acting together to meet the common needs and aspirations of its members
• make decisions democratically
• share any profits earned between members

Question 5

What are the three main types of cooperatives?

Answer 5

• Consumer coop
• Worker coop
• Producer coop

Question 6

What is a consumer cooperative?

Answer 6

• Owned by customers who buy the used goods and service for personal use
• Members get access to goods and services at a lower price than those charged by traditional commercial businesses.

Question 7

What is a worker cooperative?

Answer 7

• A business that is owned and operated by the workers themselves
• By operating as an enterprise, members are provided with work

Question 8

What is a producer cooperative?

Answer 8

• Cop that joins and support each other to process or market their products
• Many producer pool their resources to obtain cost efficiencies

Question 9

What are 4 pros of cooperatives?

Answer 9

• Incentive to work
• Decision-making power
• Social benefits
• Public support

Question 10

What are 3 cons to cooperatives?

Answer 10

• Limited sources of finance
• Slower decision-making
• Limited promotional opportunities

Question 11

What is an NGO or Non-profit?

Answer 11

• Run in a professional and business-like manner but without profit being the major objective
• Any surplus profit is invested back into business for benefits of its members
• Aim is to provide a service or to promote special causes
• Operates in private sector

Question 12

What are the two types of NGO’s?

Answer 12

• Operational
• Advocacy

Question 13

What is a Operational NGO?

Answer 13

• established for a given purpose
• orgs involved in relief based and community projects

Question 14

What is an Advocacy NGO?

Answer 14

• more aggressive approach to promote or defend a cause
• raise awareness through direct action

Question 15

What is a Charity?

Answer 15

• Type of NGO
• Collection donations from individuals in order to support a cause that is beneficial to society
• large org are run by a group of managers and trustees, similar to a LLC board of directors
• some are paid some volunteer

Question 16

Advantages of a charity?

Answer 16

• provide financial support for welfare of society
• typically do not pay income tax or corporation tax
• donors get income tax credits
• can also register as LLC

Question 17

Disadvantages of a charity?

Answer 17

• Lack of profit leads to staff demotivation
• Trustees are not allowed to receive any financial benefit
• need to be registered
• financial activities must be recorded
• only survive off donations

Question 18

What is a pressure group?

Answer 18

• NGO set up by members o address a special interest of the group
• aim to win public and media support
• try to influence government and legislation