Public-Private Partnership Chapter 2 Revision Questions with Correct Answers Explain three advantages to your own country from increased industrialization. - Correct Answer 1. Total GDP increases and therefore raises the average standards of living.
- Increased output of goods can result in lower imports and high exports.
- Expanding manufacturing businesses will result in more jobs being created.
- the board of directors control the management and decision making of the business
- different companies might have different strengths and experiences and they might therefore fit will
- costs and risks of a new business venture are shared
- styles of management and culture might be so different that the two teams do not blend well
- the business failure of one of the partners would put the whole project at risk.
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What is the difference between private sector and public sector organizations? - Correct Answer Private sector - comprised of businesses owned and controlled by individuals or groups of individuals.Public sector - comprised of businesses accountable to and controlled by central or local government (the state).State three differences between a sole trader and a private limited company. - Correct Answer Sole trader - unlimited liability, lack of continuity, difficult to raise additional capital.Private limited company - limited liability, continuity, able to raise capital from the sale of shares to family, friends, and employes.Who (a) owns and who (b) controls a public limited company? Explain why this distinction might lead to a conflict. - Correct Answer a) the shareholders own the company
This distinction might lead to a conflict over the objectives to be set and direction to be taken by the business.State two benefits and two risks for a business of engaging in a joint venture. - Correct Answer Benefits
together.
Risks
together.