Learning Aim A Flashcards
(32 cards)
Private-sector businesses Examples
Sole trader, partnership, private limited, public limited
Sole Trader
Owned and operated by one person. They will make all the decisions and take all of the profits but are responsible for any debts and also have unlimited liability
Partnership
A business in which two or more persons combine their assets and skill. They will share any profits but are responsible for any debts.
Private Limited Company
Generally smaller businesses. Shareholders who invest money. Share of the company. Bought openly on the stock market. lose investment if business fails but have limited liability
Public limited company
Tend to be larger businesses. General public on stock market. Shareholders can vote on policies. Paid a dividend of the profits. Not liable for debts
Co-operatives
A businesses owned jointly by their members. Share the profits equally
Unlimited liability
Personally and fully responsible for all losses and debts of the business. There is no limit to the amount of debt they are responsible for
Limited liability
Business ownership in which the owners are liable for their individual investments. Shareholder bought £10,000. Only have to cover £10,000 of the company’s debt
Public-sector businesses
Businesses owned and funded by the government. They are managed by local councils
Public corporation
A publicly owned company E.g a university which extend their sports facilities for public use
Local authorities
A business run by a local, district, city of borough council. sports and leisure brief to provide a range of services.
Public bodies
These organisations are set up and funded by the government
Third-sector businesses
They benefit society or the community and are not for profit and are not government run
Voluntary sector
Organisations that exist to provide opportunities and facilities for their members.
Charitable trusts
These organisations exist to fulfil a common aim. Improvement of public health. They usually do not pay tax
Local scope
Based in a specific town/knows the needs of its surroundings
National scope
Operates throughout a country
International scope
Trades across international borders. E.g. Premier league clubs are based in England but sell merchandise to fans from around the world
Micro Business
Up to 0-9 employees
Small Business
Up to 10-49 employees
Medium Business
Up to 50-249 employees
Large Business
More than 250 employees
Private sector business
Making a profit, breaking even, survival and growth
Breaking Even
Making an equal amount of profit as costs
