Business 1.2

Private sector

The part of the economy made up of organizations owned and controlled by private individuals or organizations.

Public sector

The part of the economy made up of organizations owned and controlled by the government.

For-profit organization

An organization that aims to generate profit for its owners.

Non-profit organization

An organization that exists primarily to achieve social, environmental or community objectives rather than generate profit for owners.

Social enterprise

An organization that uses commercial activities to achieve social or environmental objectives.

Sole trader

A business owned and controlled by one person.

Unlimited liability

A legal situation in which the owner is personally responsible for all the debts of the business.

Partnership

A business owned and controlled by two or more people who share responsibility for the business.

Partnership agreement

A legal agreement that sets out the rights and responsibilities of the partners.

Privately held company

A company whose shares are privately owned and are not available for purchase by the general public on a stock exchange.

Publicly held company

A company whose shares are available for purchase and sale by the general public, usually through a stock exchange.

Limited liability

A legal situation in which the owners' financial liability is limited to the amount they have invested in the business.

Share

A unit of ownership in a company.

Shareholder

A person or organization that owns shares in a company.

Dividend

A payment made by a company to its shareholders from its profits.

Cooperative

A business owned and controlled by its members who work together to achieve shared objectives.

Non-governmental organization (NGO)

An independent organization that operates to achieve social, environmental, humanitarian or other objectives rather than make profits for owners.