Business 1.2

Private Sector

Businesses owned and run by individuals or private companies, not by the government.

Public Sector

Organizations and services owned and operated by the government to benefit the public, like schools and hospitals.

Sole Trader

A business owned and operated by one person who keeps all profits but is personally responsible for any losses.

Partnership

A business owned by two or more people who share profits, losses, and decision-making.

Publicly Held Company

A business whose shares are sold to the public and traded on stock markets.

Privately Held Company

A business whose shares are not traded publicly and are held by a small group of people.

For-Profit Social Enterprise

A business that aims to make money while also achieving social or environmental goals.

Cooperative

A business owned and run by its members, who share profits and benefits equally.

Non-Profit Social Enterprise

An organization focused on helping people or the environment without aiming to make a profit.

Non-Governmental Organization (NGO)

A non-profit group independent of governments, working on social, environmental, or humanitarian issues.

Key Difference - Public Sector

Run by the government to serve the public, funded by taxes, focusing on service rather than profit.

Key Difference - Private Sector

Made up of businesses owned by individuals or companies, focused on making profits by selling goods or services.

Sole Trader Characteristics

One person owns the business, with unlimited liability, full control, keeps all profits, and is simple to set up.

Partnership Characteristics

Two or more people own the business, with unlimited liability, shared control and profits, and slightly more complexity.

Corporation Characteristics

Owned by shareholders with limited liability, managed by a board of directors, and more complex to set up.

For-Profit Social Enterprises Examples

Socially Responsible Businesses, Cooperatives, Fair Trade Businesses.

Non-Profit Organizations Examples

Charities, NGOs, Social Advocacy Groups.

Key Difference For-Profit vs Non-Profit

For-Profit earns revenue and may reinvest, while Non-Profit relies on donations and reinvests all earnings into its cause.