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The Private Sector
Businesses in this sector are owned by private individuals to make a profit
Private Examples
Sole Trader, Partnership
Public Sector
Organisations in this sector are owned by and funded by the government to provide goods and services that benefit the community
Public Examples
Central Goverment, Local Goverment
Third Sector
Businesses in this sector are concerned about raising awareness and funds for a good cause
How are Third sector businesses run
Government grants and donations
What is a sole trader
Owned and run by one person,
Owner has complete control of decisions
Financed through capital
Generate a profit
Sole trader advantages
Easy to set up
Keeps all profits
Makes all decisions
Sole trader disadvantages
Unlimited liability
Long hours
Limited access to finance
Partnership
Owned and run by more than 2 people
Financed by capital invested by each of the partners
Generate a profit
Partnership advantages
Partners share any losses
Work is shared
More ideas
Partnership Disadvantages
Unlimited liability
Parnets must share profits
Disagreements can arise
Private limited company
Decisions made by board of directors
Must be registered with companies house
Financed through selling shares and retained profits
Aims to generate a profit to satisfy shareholders
Private limited company ADVANTAGES
Owners keep control
Easier to raise finance
Limited liability
