Private And Public Sector Flashcards
(26 cards)
What is required to acquire an education and participate in recreational activities?
Money
Money is essential for various aspects of life, including education and recreation.
How can one make money in the business world?
By finding a job in an existing business or creating a new business
This involves becoming an entrepreneur or working for someone else.
What is the aim of businesses in the public sector?
To provide collective goods and services to the people
Examples include government hospitals, schools, and police forces.
How are businesses in the public sector funded?
By taxes collected from individuals and private sector businesses
These taxes are used to fund public services.
What is the main aim of businesses in the private sector?
To satisfy customers’ needs and wants while generating a profit
This involves understanding consumer preferences.
What must an entrepreneur provide to fund their business?
Capital
Entrepreneurs can use their own money or borrow from banks.
What are two key factors for success in the private sector?
- Good quality products/services
- Competitive pricing
These factors help businesses create a competitive advantage.
What are the two sectors within the private sector?
- Formal sector
- Informal sector
Each sector operates under different regulations and structures.
What characterizes businesses in the formal sector?
They are administered according to the laws of the country
Formal businesses pay taxes and contribute to the GDP.
What is GDP an acronym for?
Gross Domestic Product
GDP measures the economic performance of a country.
True or False: Businesses in the informal sector pay taxes.
False
Informal sector businesses typically do not pay taxes.
Fill in the blank: Businesses that operate in the public sector are owned by the _______.
government
Public sector businesses serve the community.
What is a competitive advantage?
Offering better value for money than competitors
This can be achieved through quality and pricing strategies.
What is required to acquire an education and participate in recreational activities?
Money
Money is essential for various aspects of life, including education and recreation.
How can one make money in the business world?
By finding a job in an existing business or creating a new business
This involves becoming an entrepreneur or working for someone else.
What is the aim of businesses in the public sector?
To provide collective goods and services to the people
Examples include government hospitals, schools, and police forces.
How are businesses in the public sector funded?
By taxes collected from individuals and private sector businesses
These taxes are used to fund public services.
What is the main aim of businesses in the private sector?
To satisfy customers’ needs and wants while generating a profit
This involves understanding consumer preferences.
What must an entrepreneur provide to fund their business?
Capital
Entrepreneurs can use their own money or borrow from banks.
What are two key factors for success in the private sector?
- Good quality products/services
- Competitive pricing
These factors help businesses create a competitive advantage.
What are the two sectors within the private sector?
- Formal sector
- Informal sector
Each sector operates under different regulations and structures.
What characterizes businesses in the formal sector?
They are administered according to the laws of the country
Formal businesses pay taxes and contribute to the GDP.
What is GDP an acronym for?
Gross Domestic Product
GDP measures the economic performance of a country.
True or False: Businesses in the informal sector pay taxes.
False
Informal sector businesses typically do not pay taxes.
