1.2 Types of business entities

Question 1

What is private sector?

Answer 1

Businesses owned and run by private individuals and organizations that usually aim to earn a profit for their owners.

• Sole traders
• Partnerships
• Privately held companies
• Publicly held companies
• Social enterprises, including cooperatives and non-governmental organizations
• Multinational corporations (MNCs)

Question 2

What is public sector?

Answer 2

Organizations controlled by a regional and/or national government, with the main aim being to provide essential goods and services for the general public.