Ownership

Question 1

What does it mean if a business is in the public sector

Answer 1

Owned by government

Question 2

What is an example of a business in the public sector?r

Answer 2

Eskom
Soth African Airways
Telkom
Denel

Question 3

What does it mean if a business is in the private sector

Answer 3

Owned by a private individual or a group of individuals without government ownership

Question 4

What are the 3 different types of economys

Answer 4

1) Planned/Command economy
2) Free/Market Economy
3) Mixed Economy

Question 5

What is a planned economy

Answer 5

All resources are owned and controlled bygovernment

Question 6

What is a free economy

Answer 6

All resources are owned and controlled by private individuals and groups

Question 7

What is a mixed economy

Answer 7

Combination of both pubplic and private ownership

Question 8

Name 1 advantage and one disadvantage of a planned economy

Answer 8

Advantage: When the government provides the people with goods or service, it is not done for profit
Disadvantage: They may make loses but no business is shut down because it is run by government

Question 9

Name 1 advantage and disadvantage of a free economy

Answer 9

Advantage: Because they have the profit motive, they provide high-quality services and good
Disadvantage: If there is no proof of funds the service wont be carried out

Question 10

What is the best economy and why

Answer 10

A mixed economy because many businesses have the profit motive which lead to them providing high-quality services and good for those that can afford, whereas for those that cant afford the government provides those people with good and services without expecting profit