1.2

Question 1

What is private sector?

Answer 1

portion of the economy that is owned and controlled by private individuals

Question 2

What are features of private sector?

Answer 2

Private ownership/control, profits earned by owners, no government involvement, privately funded

Question 3

What is public sector?

Answer 3

portion of the economy that is owned and controlled by the government

Question 4

What are features of public sector?

Answer 4

government owned, provides goods and services to citizens, financed through taxes

Question 5

What is for profit commercial enterprise?

Answer 5

businesses that earn profit distributed between owners and shareholders

Question 6

What are sole traders?

Answer 6

a type of for profit comercial enterprise where an individual owns and runs the business alone

Question 7

What are advantages of sole traders?

Answer 7

Easy to set up, profits, decision making, personal service

Question 8

What are disadvantages of sole traders?

Answer 8

Unlimited liability, hard to finance , risk of failure, high workload, higher taxes

Question 9

What are partnerships?

Answer 9

type of for profit commercial business that runs by two or more individuals

Question 10

What advantages of partnerships?

Answer 10

Easy to finance, great efficiency, less workload

Question 11

What disadvantages of parternships?

Answer 11

Unlimited liability, potential disagreement, legal and financial responsibility, lack of continuity

Question 12

How are companies different than sole traders and partnerships?

Answer 12

larger organizations owned by many individuals with shareholders

Question 13

What are shareholders?

Answer 13

individuals that hold a share of the business

Question 14

What are dividends?

Answer 14

a portion of company’s profits given to shareholders

Question 15

What are the two types of companies?

Answer 15

privately and publicly held

Question 16

What are privately held companies?

Answer 16

privately owned, shareholders are family and friends

Question 17

What are advantages of privately held companies?

Answer 17

Control and ownership, easy to finance, limited liability

Question 18

What are disadvantages of privately held companies?

Answer 18

Profits, lengthy decision making, expensive

Question 19

What are publicly held companies?

Answer 19

companies that have many external shareholders through stock market exchange

Question 20

What are advantages of publicly held companies?

Answer 20

Finance, risks, seperate legal identity, limitied liability

Question 21

What are disadvantages of publicly held companies?

Answer 21

Shared profits, expensive, little control

Question 22

What is a for profit social enterprise?

Answer 22

business that makes profit but also has social/environemental impact

Question 23

What are private sector for profict social etnerprises?

Answer 23

a type of social enterprise that produces goods and services sold in markets for profit

Question 24

What are public sector for profit social enterprises?

Answer 24

produces goods and services that are provided by the public sector; they bid for contracts with local governments who outsource services to them

Question 24

What is a cooperative?

Answer 24

a business owned and operated by its members, who share the profits

Question 24

What are advantages of for profit social enterprises?

Answer 24

positive impact, economically sustainable, increasing number of customers

Question 25

What are challenges of for profit social enterprises?

Answer 25

funding, credibility, measuring impact, managing complex supply chains (all areas of supply chains must operate in line with values), remaining true to purpose

Question 26

what are non profit social enterprises?

Answer 26

businesses that work to improve social outcomes; all profits go straight back to the business

Question 27

What are advantages of non profit social enterprises?

Answer 27

limited liability, no tax because all profits are reinvested, recieving donations

Question 28

What are challenges for non profit social enterprises?

Answer 28

competition for funding, low salaries for employees, significant paperwork to set up

Question 29

What are NGOs (none governmental organisations)?

Answer 29

a category in non profit social enterprises where they are non governmental and have a mission to benefit socially but can still recieve government funding