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Edexcel IGCSE Business Studies 1.2 types of organisations

Practise organisation types by defining ownership forms, explaining liability or franchise benefits and evaluating choices for a named business.

Syllabus
First assessment 2019
Course
Business Studies 4BS1

Exam points

  • Define ownership forms such as sole trader, partnership, franchise or social enterprise.
  • Explain benefits of sole traders, private limited companies and limited liability.
  • Evaluate franchising or ownership choices using case evidence and stakeholder effects.

Covered syllabus points

1.2.1 Business ownership types1.2.2 Business size characteristics1.2.3 Business organisation forms

1.2 Types of organisations question 1

[Maximum number: 4]

Ocean Vibes is a boat tour business located in two tourists resorts in Portugal. During the tours, it collects wildlife research. The idea came from two young scientists, Alfredo and Pedro, who share a passion for the environment, boats and science. Ocean Vibes employs boat tour guides and a sales team in each of the two resorts.

The main goal of Ocean Vibes is to connect tourism with science. It offers dolphin and bird-watching tours to tourists and uses the boat tours to collect research data on the wildlife. Its tour guides are knowledgeable, passionate and respectful of the environment.

Customers can book the boat tours online or in the tourist resorts. They are encouraged to leave reviews on Ocean Vibes' website.
Every month Ocean Vibes provides a boat tour for students and researchers who wish to study the wildlife.

There are many other businesses offering boat tours in Portugal which makes competing in the industry a challenge.

Question (a)

(a)

Define the term shareholder.

[ 1 ]

Question (b)

(b)

Explain one advantage to an individual of being a sole trader.

[ 3 ]

1.2 Types of organisations question 2

[Maximum number: 6]

IKEA is a well-known home furniture retailer with stores throughout the world. It was started in 1943 by Ingvar Kamprad when he was given some money by his father for doing well at school. He wanted to produce furniture at a price that people could afford to buy.

He realised that transporting furniture to customers was difficult as goods were often damaged. He developed flat packs to avoid damage. A flat pack contained all the materials needed to self-assemble a table, a chair or a bed.

All IKEA stores are run as franchises.

Analyse the benefits to IKEA of all its stores being franchises.

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