N5S3 - Sectors of Economy

Question 1

Name the three sectors of Economy

Answer 1

Private, Public, Third

Question 2

Describe the features of a Private Sector organisation

Answer 2

• Owned by: Private individuals e.g. shareholders
• Controlled by: Private individuals/Board of Directors
• Financed by: Private investment, retained profit and bank loans
• Aim: To make a profit

Question 3

Describe the features of a Public Sector organisation

Answer 3

• Owned by: Government
• Controlled by: Civil Servant (manager selected by the government
• Financed by: Tax
• Aim: To provide a service to the public

Question 4

Describe the features of a Third Sector organisation

Answer 4

• Owned by: Private individuals,
  members
• Controlled by: Board of trustees, managers
• Financed by: Donations, fundraising, grants from the government
• Aim: Benefit a social cause

Question 5

Name two types of organisations WITHIN the Third Sector

Answer 5

• Charities and Community groups
• Social Enterprises