Describe ( AO1)
Definition: When you
are asked to "describe" something, you are expected to provide a
detailed account or portrayal of it. This typically involves providing
characteristics, features, and details about the subject without delving into
reasons or mechanisms.
When asked to describe
a ‘partnership’, you would provide a detailed account or portrayal of what
a partnership is without delving into the reasons or mechanisms behind it. Your
response would focus on characteristics, features, and details about
partnerships.
Example response:
"A partnership is
a business structure where two or more individuals or entities collaborate to
run a business together. In a partnership, the partners share profits and
losses, and they have joint decision-making authority. Partnerships can take
various forms, such as general partnerships where all partners have equal
responsibility and limited partnerships where some partners have limited
liability. Partnerships often form for reasons like shared expertise,
resources, or complementary skills."
Explain ( AO2)
Definition: When you
are asked to "explain" something, you are expected to clarify or
provide reasons, causes, or mechanisms behind a concept or phenomenon. You need
to provide a deeper understanding by breaking down the subject and showing how
things work or why they occur.
Explain Partnership:
When asked to explain a
partnership, you would go beyond mere description and provide deeper insights
by offering reasons, causes, or mechanisms behind the concept. You should
clarify why partnerships exist and how they operate.
Example response:
"A partnership is
a business structure that exists primarily due to the advantages it offers.
Partnerships are often formed when individuals or entities seek to combine
their resources, expertise, or capital to achieve common business goals. This
collaborative approach allows for the sharing of both responsibilities and
profits, which can be advantageous in various scenarios. For instance, in
professional partnerships like law firms or medical practices, experts from
different fields can come together to provide comprehensive services.
Additionally, partnerships can be more flexible and less bureaucratic than
other business structures, making them a preferred choice for small businesses
that value agility and shared decision-making."
In this explanation,
you've not only described what a partnership is but also provided context and
reasons for why partnerships are established and why they might be beneficial.
The key difference is
that 'describe' provides information about a subject, while 'explain' offers a
deeper understanding by delving into the reasons, mechanisms, or causes behind
that subject.
Let’s see one more
example:
Describe two advantages
of a public limited company:
Example response:
· Access
to Capital: One advantage of a public limited
company is that it can raise capital by selling shares to the public. This
means it has the potential to gather significant funds for expansion or
investment.
· Limited
Liability: Another advantage is that shareholders
have limited liability, meaning they are not personally responsible for the
company's debts. This can protect their personal assets in case the company
faces financial difficulties.
In this
"describe" scenario, you've provided the advantages but haven't gone
into detail about why these advantages exist.
Explain two advantages of a public limited company:
Example response:
· Access
to Capital: One significant advantage of a public
limited company is its ability to raise capital through the sale of shares to
the public. This is advantageous because it allows the company to tap into a
large pool of potential investors who can provide the necessary funds for
growth and development. By accessing capital from a broad range of
shareholders, the company can undertake ambitious projects, expand its
operations, and remain competitive in the market.
· Limited Liability: Another crucial advantage is the concept of limited liability for shareholders. This means that shareholders are not personally responsible for the company's debts or obligations. This advantage is essential because it encourages individuals to invest in the company without fear of losing their personal assets in case the company encounters financial difficulties or legal issues. Limited liability enhances investor confidence and promotes investment in the company's shares.
In this "explain" scenario, you've provided a more comprehensive response by not only listing the advantages but also giving reasons and context for why these advantages are important in the context of a public limited company.
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