Studied by 12 people
Private sector
Set up by individuals or groups of individuals
Public sector
Ran and owned by the state
Unincorporated businesses
There is no legal distinction between the owner of the business and the business itself, so everything is carried out in the name of the owners
Incorporated business
They have a separate legal entity from their owners.
Types of businesses
Sole traders
The business is owned by only one person.
Partnerships
More than one owner. Partners share responsibilities.
Private limited company
Separate legal entities from their owners, so if the business has debts the owner will not be personally liable. Shares.
Public limited company
Big, multinational companies boasting large numbers of employees. Shares.
Non-profit organizations
They run according to business principles but they do not aim at making profit.
Charities
Non-profits with the aim to raise money for good causes and draw attention to the needs of disadvantaged groups of people.
Pressure groups
Circles of people that attempt to influence decision makers in politics and society.
Public-private cooperation
When the government creates a commercial partnership with the private sector to provide certain goods or services.
Privatizacion
Process through which companies that were originally owned by the state are bought by the private sector.
Note
Flashcard