SECTORS OF THE ECONOMY

Question 1

private sector

Answer 1

Organisations owned by private individuals that exist to make a profit

Question 2

public sector

Answer 2

services and agencies run by the government on our behalf

Question 3

third sector

Answer 3

non-profit making organisations that exist to support a cause or aim

Question 4

private limited company

Answer 4

a business owned y 1-50 private shareholders

Question 5

private limited company key features

Answer 5

Owned by private shareholders

controlled by a board of directors who run the business on behalf of shareholders

financed by share equity which is capital invested by shareholders

Question 6

private limited company advantages

Answer 6

limited liability- if the business goes into debt the owners are not responsible for paying it back. They can only lose what they invested

more finance can be raised compared to a sole trader and partnerships

viewed as risky compared to sole trader and partnerships so it will be easier to obtain finance

Question 7

private limited company disadvantages

Answer 7

financial accounts must be published which the public can see

more complicated compared to