Business Forms and Sectors

Flashcards covering key concepts related to public vs. private sectors and unincorporated vs. incorporated business structures.

How is the public sector typically run and funded?

The public sector is run by the government through taxpayer money.

What types of organizations are found within the public sector?

Public sector companies and public sector organizations.

Who typically owns businesses in the private sector?

Individuals or groups of people (e.g., plc, Ltd, or sole traders).

What types of organizations are often found in the not-for-profit sector, operating with social, ethical, or environmental objectives?

Social enterprises, charities, community groups, food banks, and cancer research organizations.

What does it mean for a business to be 'unincorporated'?

The owner is legally the same as the business, and there is no legal difference between them.

What type of liability do owners of unincorporated businesses have?

Owners of unincorporated businesses have unlimited liability, meaning they are personally responsible for the business's debts.

What is the most common form of an unincorporated business?

Most unincorporated businesses operate as sole traders.

What does it mean for a business to be 'incorporated'?

There is a legal difference between the business and its owners.

What type of liability do owners (shareholders) of incorporated businesses have?

Owners (shareholders) of incorporated businesses have limited liability, meaning they only pay back their original investments.

What is the most common form of an incorporated business?

Most incorporated businesses operate as private limited companies (Ltds).