1.2

Public Sector

Owned by government. Provides essential goods and services to the public. (public schools, libraries, parks)

Private sector

owned by individuals and organizations with an aim to make profit.

1 sole trader

Individual who is the owner of their own business. May hire other people (like family) to help run the bis. Financed with personal funds. Unincorporated. Unlimited liability.

+ Few legal formalities, owner gets full profit, own boss, privacy

- unlimited liability, limited sources of finances, workload, higher production costs

2 partnerships

profit seeking business operated by 2 or more people who finance the business with their own personal funds. It is unincorporated and has unlimited liability.
+ shared responsibilities, privacy
-unlimited liability, longer decision making, conflict, must have mutual trust

3 companies

Businesses owned by shareholders. Incorporated (so a separate entity). Limited liability.

+limited liability, continuity

-complicated and expensive set up. financial info is given to all shareholders. more legal requirments.

Private limited company

doesn’t sell shares to general public - only family & friends. Owners have greater control. Limited finances. eg. chanel, lego

Public limited company

Sells its shares to general public through stock exchange. eg. coca cola, nike

for profit businesses

cooperatives, microfinance providers, public private partnerships

Cooperatives (producer, consumer, worker)

Businesses owned by group of people working together to achieve shared needs and aspirations. they share ownership, profit, have democratic decision making. Focuses on benefiting the members.

Consumer cooperative

owned by people who are the customers. they access the sold goods at cheaper prices.
+work incentive, decision making, social benefit it

-limited finace source, slow decision m,

worker cooperative

owned by workers. like a cafe who is owned by the chefs and servers.

producer cooperative

owned by people who produce same type of goods. like farmers who want to access larger markets

Microfinance providers

financial service aimed at small business owners. especially those with low incomes. helps underprivileged take steps towards economic independence.

ppp

gov. work with private sector to create goods and services. like NY central park

Non profit

wants to promote special cause or provide some service. profit is not their objective. any profit is invested back into the businesses. like scouts

NGO (2 types)

profit is not their objetive.private sector obviously. wants to defend and promote a cause (advocacy) creates relief based and community projects (operational)

Pressure groups

nfo to adress a specific cause the members care about like pollution