4.1 - Classify different economic and industrial sectors Flashcards
Name the 3 economic sectors
- Public sector
- Private sector
- Third sector, or not-for-profit
Name 4 examples of public sector services
- Healthcare
- Education
- Military
- Emergency services
Name 5 examples of UK taxes
- Levies on buying and owning property
- Taxes on vehicles
- Taxes taken from employees salaries
- Taxes on business profits
- Commodity taxes on fuel, alcohol, tobacco and sugar
Privatised
Taken over by a private investor and run as a Limited or Public Limited Company
Name 8 businesses in the private sector
- hospitality
- Services
- Supermarkets
- Non-food retailers
- Online retailers
- Manufacturers
- extractive commodities
- Food processing businesses
Name 4 forms of private sector organisations
- Sole traders
- Partnerships
- Private Limited Companies (Ltd)
- Public Limited Companies (Plc)
Name 3 examples of sole traders
- Hairdressers
- Carpenters
- Artists
Sole traders
Owned and run by one person, they can employ other people to work for them and if they do they are responsible for paying their salaries
An advantage of being a sole trader
They are completely responsible for the running of their business and do not have to report to anyone else or share profit or decision making
A disadvantage of being a sole trader
Solely liable for any debts the business may incur
Partnerships
Organisations which are owned and liable by two or more individuals - business partners can keep any profit made by the partnership after paying tax but are also responsible for any losses
Private limited companies (Ltd)
Provides consumers with goods and services, with the common objective of making a profit. Its a legal entity in its own right meaning it is legally separate from the people who run it. the company itself keeps any profit it makes (after paying tax) and is liable for any debt
Shareholder
An individual who owns a share or portion of an organisation
name 4 examples of limited companies
- Private
- Small market traders
- Business consultants
- IKEA
Public limited company (Plc)
It exists to provide goods or services, to make a profit, and is owned by its shareholders. The shares are traded on the stock exchange
Describe the shares of a private limited company
They belong to the owners and cannot be bought and sold on the stock exchange
Describe the shares of a public limited company
They are traded on the stock exchange and belong to investors
Name 3 examples of Plc companies
- Sky
- Rolls Royce
- Tesco
- McDonalds
Third sector
Term usually used for charities, NGOs and not for profit organisations
Charity
A not for profit organisation with the objective of raising awareness or helping its chosen cause
Cooperative
A people centred enterprise owned and run by and for its members which either reinvests any profits or returns them to its members
Legacies
Amounts of money left to an organisation in a persons will
Name 6 examples of third sector organisations
- Charities
- Voluntary
- Community organisations
- Cooperative
- Trade unions
- professional associations
Name 3 examples of cooperatives
- John lewis partnership
- Wazalendo Savings and credit cooperative society
- Credit agricole
Name 5 common aspects of third sector organisations
1.Goals
2. Stakeholders
3. Speed of delivery
4. Resources
5. Budget
Name for the public sector:
Owned
Funded
Shares
Objective
Internally administered by
- Government
- Taxes / levies
- No
- Provide the general public with services
- Government
Name for the private sector:
Owned
Funded
Shares
Objective
Internally administered by
- private investors
- Investments, loans
- Yes
- Provide goods and services, make a profit
- Own business
Name for the third sector:
Owned
Funded
Shares
Objective
Internally administered by
Trustees
Donations, levies
No
Promote and support social, environmental and cultural objectives
Employees and volunteers
What sector do public sector organisations belong to?
Tertiary sector
What sector does the private sector organisations belong to?
Primary, secondary and tertiary
What sector does the third sector organisations belong to?
Tertiary sector
