mrs parkin- topic 1; types of bsuiness owner ship Flashcards
what is a public sector
organisation run and controlled by the government
what types of government departments
education
the police
defence
what local authorities are ran by the government
school libraries swimming pools( but now are most ran privately) bin collection NHS
what’s the difference between the public sector and the private sector
public sector: government on the behalf of the people relevant government minister managers government private sector: shareholders/ owners board of director managing director shareholders/ owners
what are the types business in a private sector
sole trader
partnerships
public limited companies
private limited companies
what is a sole trader? one advantage and disadvantage
owned by one person- can employ workers; most of them are small and local businesses. the owner of the business invests money into the business
advantage: can keep all the profit
disadvantage: unlimited liability
what is a partnership? one advantage and disadvantage
owner by tow or more people. usually have to draw up “dead of partnership”
advantage: access to more skills, knowledge and capital
disadvantage: have to share profits
private limited company? advantage and disadvantage
owned by shareholders, people who invested into the company- family or friends, they need to registered with companies house
advantage: don’t need to publish accounts to the public
disadvantage: to set a company up is really expensive
public limited company? advantage and disadvantage
owned by shareholders, anyone can potentially become a shareholder for the company
advantage: limited liability
disadvantage: need to access to large amount of capital
what is a co operative
an organisation owned by workers, customers or the community. work for the benefit of the owners not for the profit
non profit workers
have no shareholders, owners, exist for the best interest of its consumers
charity
helping people or the society
