3.1 - Types of Firm

Question 1

What are the primary types of firm?

Answer 1

Not for Profit Organisation
Public Sector Organisation
Private Sector Organisation
Private Limited Companies
Co-operative Producers
Social Enterprise

Question 2

What is a Not for Profit Organisation?

Answer 2

Commercially operated business
Social welfare + environmental aims take precedent
Profits often reinvested for social purposes

Question 3

What is a Public Sector Organisation?

Answer 3

Owned + controlled by the state

Question 4

What is a Private Sector Organisation?

Answer 4

Owned by private investors
Occupy 84% of UK jobs

Question 5

What is a Private Limited Company?

Answer 5

Corporations whose shares are not listed on a public exchange

Question 6

What is a Cooperative Producer?

Answer 6

Simultaneously owned and run by their members

Question 7

What is a Social Enterprise?

Answer 7

Profits reinvested for social purposes
Exist for benefit of community rather than private investors