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private sector
the portion of an economy not owned or directed by the government
public sector
the portion of the economy controlled or owned by the government such as government services, schools and state-owned businesses
sole trader
A business owned and run by one person; there is no legal separation between the owner and the business.
partnership
A business owned and run by two or more people who share the responsibility for the business and the profits
value
all the benefits that a business creates for the stakeholders involved
multinational companies
A company that operates in at least two countries, one of which is not the company's home country
features of the private sector
private ownership and control, profits can be earned by owners, little or no government involvement, largely privately funded
private sector is important for economy because
creating employment, helping the development and growth of the economy, providing a wide variety of goods and services
private sectors consists of
sole traders, partnerships, privately held companies and publicly held companies
publicly held company
A company that is publicly owned and and has many shareholders who can buy and sell their shares through a stock exchange.
privately held company
A company that is privately owned and often has family or friends as the shareholders; the shares are not sold to the wider public and are not traded on a stock exchange.
for-profit social enterprise
A type of social enterprise that earns revenue and profits, but integrates social and/or environmental impact directly into its business model.
non-profit social enterprise
A type of social enterprise that produces goods and services to meet human needs, but where any surpluses earned must, by law, be reinvested back into the business.
for-proft commercial enterprise
A type of business that earns profits, which are distributed to owners or shareholders; profits may have prioritity over other objectives.
cooperative
A business owned and operated by its members, who share the profits.
non-governmental organization
A type of non-profit social enterprise that often operates on a large scale, nationally or internationally.
features of the public sector
provide essential goods and services, government owned and controlled, financed by gov taxes, public can alter decisions.
silent partners
provide some finance and expect a share of the profit but take no part in the running of the business
deed of partnership
contract between partners
partnership advantages
greater finance and diverse skills
disadvantage of parternship
clash of opinions and less control
limited liability
the owners of a business are not personally responsible for the debts of the business if it fails; the owners and the business are legally separated.
unlimited liability
the owners of a business are personally responsible for all the debts of the business if it fails; the owners and the business are not legally separated.
memorandum of association
activity of the business and initial share capital
articles of association
internal operation of business - roles and responsibilities
for-profit commercial enterprise example
amazon, apple, stores
for-profit social enterprise example
baron fig: buy a book plant a tree, wary Parker: glasses for needy
non-profit social enterprise example
goodwill, kiva
initial public offering (IPO)
A situation where a company sells all or part of the business to external shareholders for the first time.
documents required before privately held companies can start operating
the Memorandum of Association, which states the details of the company
the Articles of Association, which states the internal roles and responsibilities of the board of directors and shareholders
Note 
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