Business Ownership

Question 1

What is meant by the private sector?

Answer 1

Private sector businesses – these are owned by individuals and aim to make a profit (e.g Apple, Topshop etc).

Question 2

What is meant by the public sector?

Answer 2

Public sector businesses – these are owned by the government and usually provide a necessary service - e.g Councils, Government departments, and Public corporations (BBC)

Question 3

What are the five business ownership options?

Answer 3

Sole trader
Partnership
Private limited company (Ltd)
Public Limited company (PLC)
Social enterprise

Question 4

What is a sole trader?

Answer 4

A sole trader is someone who sets up a business alone (a single owner).

Question 5

What is meant by partnership?

Answer 5

To form a partnership there must be at least two people, so two or more people. Usually there are up to 20 partners but could have more.

Question 6

What is meant by Private limited company (Ltd) and public limited company (PLC)?

Answer 6

A Ltd sells shares to friends and families whereas PLC can sell shares (float) to anyone on the stock exchange and must have share capital of over £50,000.

Question 7

What is meant by social enterprise?

Answer 7

‘A social enterprise is a business that offers their product or service to benefit the rest of society(others).’