Barter

A barter is the exchange of goods and services without the use of money.

Public and Private Sectors

The Private Sector

The private sector consists of small, medium, and large scale businesses. The owners of these businesses are individuals who have set them up on their own.

The main purpose of a private sector business is to make a profit. They are started through loans, savings, investors and the selling of shares to the public.

In private sector businesses, they are funded by their owners, there is no government intervention, owners make their own decision and the profits are shared (investors and share holders).

Examples of public sector businesses are Grace Kennedy, Lasco Distributors Limited, Wisynco Food Group, and Bashco

The Public Sector

The public sector consists of enterprises owned and run by the government. It gives benefit to the public and its main aim is to support/supply the public.

The public sector encompasses the portion of the economy that is directly managed and operated by the government to provide essential goods and services (such as education, healthcare and infrastructure).
The public sector aims to fulfill societal needs and promote the welfare of citizens through public policies and funding.

The public sector aims to provide services at the lowest possible cost, and is funded by the government. Such businesses usually participate in the ventures of basic necessities and uses the profits for the efficiency of the business.

The public sector gets their source of money from tax.

Examples of businesses operating under the Public Sector would be Education (Public Schools), Health, Public utilities, Postal services, Road construction and maintenance, Transportation, and Security

Money

Money is anything that is generally accepted as a medium of exchange and a measure of value.

Money stores value and is a standard of deffered payment.

Money is portable, divisible, acceptable, durable, scarce, and it is homogenous (something that is uniform in composition or character)

Specialisation

Specialisation is a form of labour which occurs when the production of goods is broken down into numerous seperate tasks with different workers performing each task

Substinence Production

Substinence production is production at the basic level where the output from the production process is aimed primarily at meeting the basic needs of the producer's household rather than for sale in the market.

Sole Traders

A sole trader enterprise is the most common form of business. It is also the easiest form of business to set up.

A sole trader enterprise comprises of one person running a business. This person still has the option to hire persons.

A sole trader enjoys all the profits, bears all the risks and has limited capital. A sole trader also has personal contact with clients and performs a large variety of tasks related to the operations of the business.

The business must be registered although there are no legal formalities in the formation of businesses.
The sale of food items requires approval from the local health authority

Examples of Sole Trader businesses are grocery/corner shops, restaurants, Petrol Stations, Barber shops/hairdressing services and gardener services

Partnerships

A partnership is a business started by the minimum, two persons and the maximum, twenty persons to make a profit.

When a number of partners want to make a business a written agreement should be present. This written agreement helps to settle disputes and is called the partnership deed

The partnership deed contains the number of partners, amount of capital contributed by each partner, the type of trade involved, salary of partners and the name of the partnership.

General/Ordinary Partners: All partners manage the business and are personally liable for its debts. They provide financial capitals neede and shares all the profits and lost.

Limited Partners: Includes both general partners (who manage the business) and limited partners (who invest but have limited liability). They are also called silent partners

- They Contribute capital to the partnership but do not participate in management.
- Their liability is limited to the extent of their investment in the partnership, providing them
with some protection against personal liability for the business's debts.
- Usually invest funds and are primarily focused on financial returns rather than operational
control.

• Limited liability - an owner's or partner's financial responsibility for a company's debts and obligations is restricted to the amount they have invested in the business

Limited Liability Partners: Partners have protection from personal liability for certain debts of the partnership, allowing for a blend of liability protections and operational flexibility.

- Not personally liable for the partnership's debts beyond their investment, safeguarding
personal assets from business creditors.
- Often found in professional partnerships, such as law firms or accounting firms, where
partners want to limit their risk while still having a stake in the management of the business.

Co-Operatives

A co-operative is a business organisation formed by a group of co-operators who work together to achieve shared objectives. It is formed by its members and profits are typicall shared among the members.

There are financial co-operatives (credit union) and consumer co-operatives (retail trade)

Their main aim is to serve the interest of their members by offering a product/service that they could benefit from.

Purpose: Furthering the economic welfare of its members and that of the wider society by providing them with goods and services.

Co-operatives can be formed in agriculture, manufacturing, retail, workers.
They are voluntary non-profit making organizations, managed and control by their members who are also users of the product/service, and there is pooling of capital among the membership.
Co-operative societies are tax exempted, that is the they do not pay tax on surplus income.

Co-operatives are governed by democtratic control. It also involes limited interest and open membership. They raise capital through donations, membership fees, grants, and investments.

A management committee is elected to make policy decisions.

Franchise

A franchise consists of franchisees and franchisors (parent company). A franchisor grants a licence to a franchisee so that it can sell the franchisor’s products/services and pay for the rights to use the name, logo and marketing. They can take the form of partnerships or private limited companies
- Examples: KFC, Dominos, Payless, Wendy’s, Starbucks, Courts, Mothers, Tastees

The franchisee pays for the franchise to trade in a given area and will receive training and equipment from the franchisor.
The franchisees and franchisor are seperate companies. The franchisee will be expected to share the profit with the franchisor.

Franchisee Adv and DisAdv

Franchisor Adv and DisAdv

A franchisee bears the name of the co-operatives and god will, they are licenced by the parent company and are easily recocognised because of their logo.

Public and Private Limited Company

A company suggests a group of companions who have come together to set up a business. A company is a business entity that has been incorporated and has a seperate identity from it’s owners.
To become a company, a business needs to become legally incorporate, which includes refistering the company in the country in which the company has its head.

A private limited company is an incorporated business organization consisting of two (2) to fifty (50) members whose aim is to make a profit.
A private company is a company that is owned by a private shareholders and whose shares are not openly traded on a stock exchange.
‘Ltd’ is included in the companies name because shareholders have limited liability

A private limited company must submit to the registrar of companies the memorandum of association, the articles of association, and the statement of authorized, registered or nominal capital.

Memorandum of association: This document governs the company’s relationship with the outside world. (contains: company’s name, address of the company’s registered office, objectives of the company)
Articles of association: Control the internal running of the company. (contains: procedures for calling on annual general meeting, rights and obligations of the directors, procedures governing the election of directors;)
Statement of authourized, registered or nominal capital: This is the amount stated in the Memorandum of Association, which is the maximum amount of shares the company is authorized to issue.

The owners who is a part of the board of directors manages private limitedcompanies or may appoint specialized personnel.

Some characteristics of private limited companies are that shareholders have limited liability, the companies must be registered with the Registrar of Companies and the word ‘limited’ must be included in the name.

A public limited company is a type of business that can offer its shares to the public and is often listed on a stock exchange.
A public company is a company whose shares are traded on a public stock exchange