CAIE A-Level Business 1.2.2 Business ownership

Practise comparing ownership forms, explaining features such as limited liability and judging which structure fits a case business.

[Maximum number: 1]

Post Scent (PS)

PS is a private limited company operating in country H . It sells perfume for men and women using its own website. PS purchases the perfume in large quantities from various manufacturers and then sells it in smaller quantities to its customers. Most of the perfumes are sold in glass bottles.

PS has two main ways in which it sells perfume:
- A website where customers can purchase a range of perfumes. The perfumes are priced to be lower than high street competitors.
- A subscription service where customers pay a monthly fee for a mystery perfume to be delivered each month.

All of PS's products are delivered to customers' homes using the postal service. The packages can be left in a mailbox or in a safe place outside of the home. PS has an aim to improve the sustainability of its operations.

PS uses incremental budgeting. Table 1.1 shows the budgeted and actual cost and revenue data for 2023.

$Table 1.1 Budgeted and actual cost and revenue data for 2023 (\$000)$

Table 1.1 Budgeted and actual cost and revenue data for 2023 (\$000)

The directors of PS have decided that the business needs a Marketing Manager. The role

The directors have shortlisted five suitable applicants and plan to invite them all to an assessment centre as part of the recruitment process.

Identify one feature of a private limited company.

All question bank results loaded

1.2.2—Business ownership question 1