IGCSE Enterprise: Specimen Questions with Answers 19 - 20 of 49

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Case Study: 4

Jones and Little (2000) present a critical analysis of the role of partnership in new public management in the UK, in a paper called Rural challenges: partnership and new rural governance. The authors note that: “whatever definition is favored, partnerships or networks between the public, private and voluntary sectors are an important part of what constitutes novel forms of governance” in the UK. The authors question the uncritical promotion of this form of governance, which emerged from the “traumatic neo-liberal restructuring of urban politics in the 1980s” and its transfer to rural areas, where it brings the requirement for rural organizations and In the field of public policy, partnership is often viewed as the second generation of efforts to bring competitive market discipline to bear on government operations (after the first generation efforts of privatization) . The authors argue that contemporary discussions of partnership approaches lead to submergence of key issues about power relations, accountability, public spending levels, and equitable resource allocation in the systematic addressing of the needs of rural communities. They question the culture of partnership and its suitability as a means of securing effective rural regeneration, arguing for greater scrutiny to be paid to its increased political currency and practical applications.

In Government – non-profit partnership: A defining framework, Brinkerhoff (2002a) notes that partnership has emerged as an increasingly popular approach to privatization and government – non-profit relations. However, there is no consensus on what partnership means, and its practice varies. The author provides a useful review of partnership literatures and refines the definition of partnership using the concepts of ‘mutuality’ and ‘organizational identity.’ These concepts are used as the two axes of an inter-organizational relationship matrix, in which partnership is distinguished from three other basic relationship types: contracting, extension, and co-option or gradual absorption.

Question 19 (6 of 12 Based on Passage)

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Short Answer▾

Give two advantages and disadvantages of sole trader firm

Explanation

Advantages of Sole Trading Include

  • You are the owner of the business and keep all profits with yourself.
  • You will have unlimited liability for debts as your private assets and business assets would not be treated separately.
  • You will be burdened with the responsibility for making day-to-day business decisions.

Disadvantages of Sole Trading Include

  • You will have unlimited liability for debts as your private assets and business assets would not be treated separately.
  • You will be burdened with the responsibility for making day-to-day business decisions.

Question 20 (7 of 12 Based on Passage)

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Explain the term-

i. Franchise

ii. Co-operative

Explanation

Franchise: Franchising is an arrangement between two parties where the first party (the franchiser) grants the second party (the franchisee) the right to utilize its business processes, produce and marketing of a good or service or use of its trademark. The franchiser collects a one-time payable franchisee fee as well as a percentage of sales from the franchiser. Franchise has a better access to talent, easy expansion of capital and minimized growth risk.

A co-operative society is a voluntary association of persons who join for mutual help. They are driven by the need to protect their economic interests in the face of possible exploitation at the hands of middleman obsessed with a desire to earn greater profits.

  • A minimum of ten persons are required to form a cooperative society.
  • The registration of cooperative society is compulsory
  • The capital is contributed by the members only in the form of share capital
  • The cooperative organization can raise loans also from banks.