Business Sectors

Question 1

What are the 3 Buisness Sectors?

Answer 1

Private
Public
Third

Question 2

What is the Private Sector?

Answer 2

The Private Sector is a business that is privately owned and controlled.

Question 3

What is the Public Sector?

Answer 3

The Public Sector is a business that is owned and controlled by the government.

Examples:

NHS, Police and Schools

Question 4

What is the Third Sector?

Answer 4

The Third Sector is a business that is organised for donations. Known as a charity organisation or community clubs.

Examples:

WWF, RSPCA, Oxfam and Football Clubs

Question 5

What do Private Sectors have?

Answer 5

Private Sector:

• Sole Traders
• Partnerships
• Limited Companies
• Public Limited Companies

Question 6

What do Public Sectors have?

Answer 6

Public Sectors:

• Owned and Controlled by the government.
• Public services for the public.

Question 7

What do the Third Sectors have?

Answer 7

Third Sectors:

• Charities
• Community Clubs
• Paid by donations

Question 8

What are the two Business Ownerships?

Answer 8

Sole Traders

Partnerships

Question 9

What is a Sole Trader?

Answer 9

A sole trader is a SINGLE owner and leader of the business.

The money is set it up from their own savings or family/friends bank loans.

Question 10

What are the advantages of a Sole Traders?

Answer 10

• East to set up
• No paperwork
• Less need of money
• Owner makes all the decisions
• Knows customers personally
• Needs for local people
• Owner keeps all profits
• Business accounts kept private

Question 11

What are the disadvantages of a Sole Trader?

Answer 11

• Unlimited liability
• Harder to take time off
• Harder to raise money to help start and expand
• Usually charged higher prices

Question 12

What does Unlimited Liability mean?

Answer 12

If the business doesn’t have enough money. The owner has to use their valuables to spend their products.

Question 13

What is a Partnership?

Answer 13

A business that is run by 2 to 20 owners. Money is set up from partners and bank loans.

Question 14

What is the deed of Partnership?

Answer 14

General rules that the owner or owners must follow in order to run a business. The rules is known as a “Partnership Act 1890”.

Question 15

What is a Sleeping Partnership?

Answer 15

A type of Partnership that had limited liability. They invest money to the business but take no responsibility.

BUT they do receive profit from their investment.

Question 16

What are the advantages of a Partnership?

Answer 16

• More money are left
• Decisions are shared
• Easier to take time off
• Easier to borrow money
• More opportunity for teaming up with larger business and productions

Question 17

What are the disadvantages of a Partnership?

Answer 17

• Unlimited liability
• Partners tend to argue
• If a partner retires or dies, business has to close and has to be opened as a new business
• Partners are Limited