Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
other ownerships
franchises, co-operatives, public corporations
| Question | Answer |
|---|---|
| what is a franchise? | the right to sell another firm's products |
| what are dealer franchises? | franchises which trade under their own name, but advertise that they sell a particular manufacturer's products |
| what is an example of a business which sells their products through dealer franchise? | car manufacturers |
| what are branded franchises? | franchisee buys the right to trade under the name of the other firm (the franchisor, sells the right) |
| what is an example of a business which sells their products through branded franchise? | big firms in fast-food industry |
| what is a benefit for the franchisee? | they are buying the rights to sell an established product, which makes setting up a franchise less of a business risk than selling something brand new |
| what is a problem for the franchisee? | can only sell the products of the franchise, meaning the owner's freedom is limited |
| what is a benefit for the franchisor? | can increase their market share without increasing the size of their own firm, meaning it is a very profitable way to expand |
| what is a problem for the franchisor? | little control over how the franchisee sells their products |
| what is a co-operative? | business which works like a limited-liability partnership |
| what is a producer co-operative? | business owned and controlled by their workforce |
| what is a retail co-operative? | business owned and controlled by their customers |
| what is a benefit of co-operatives? | should be no conflict between the main stakeholders as they are the same people |
| what is a problem of co-operatives? | only main source of finance are the owner's capital and retained profits, which makes it harder for the co-operative to expand |
| what are public corporations? | businesses which are owned and funded by the government |
| what does a public corporation have? | board of governors who are appointed by the government |
| what is an example of a public corporation? | BBC |
| what is the main source of funds in a public corporation? | government grant, paid for by the license fee. however, the BBC is encouraged to generate its own funds by selling goods and services for a profit. |
| what makes it easier for public corporations to satisfy all stakeholders? | the fact that they don't need to make a profit, so instead they follow objectives set by the government |
Created by:
jirwin
Popular Business sets