CH. 1.2 Business Organizations Part A Flashcards
What is the Public Sector?
Comprises organisations accountable to and controlled by central or local government.
What is the Private Sector?
Comprises businesses owned and controlled by individuals or groups of individuals.
What is the Mixed Economy?
Economic resources are owned and controlled by both private and public sectors.
What is a Free-market Economy?
Economic resources are owned largely by the private sector with very little state intervention.
What is a Command Economy?
Economic resources are owned, planned and controlled by the state.
What is Privatisation?
The sale of public sector organisations to the private sector.
What is Limited Liability?
The only liability - or potential loss - a shareholder has if the company fails is the amount invested in the company, not the total wealth of the shareholder
What is a Share?
A certificate confirming part ownership of a company fails is the amount invested in the company, not the total wealth of the shareholder
What are Shareholders?
Individuals or institutions that buy/own shares in a limited company
What is the private finance initiative (PFI)?
Investment by private sector organizations in public sector projects
What is the Triple-Bottom-Line?
The three objectives of social enterprises; economic, social and environmental.
What are Puplic Corperations?
A business enterprise owned and controlled by the state- also known as nationalised industry or public sector enterprise.
