sectors of economy Flashcards
what is a partnership/features of a partnership
- private sector
- owned by 2 or more partners
- controlled by the 2 or more partners
- financed by personal savings, bank loans,retained profits, bank overdrafts
what are advantages of partnerships
- shared workloads
- more funding available
- more people bring more skills
what are disadvantages of partnetships
- partnership agreement
- need to share profit
- need to compromise in decision making
- unlimited liability
what are features of a sole trader
a sole trader is someone who starts a business and owns it by themselves-they may hire employees but they still make all decisions
- private sector
- owned by one private individual
- controlled by the one private individual
- financed by personal savings, bank loans, retained profits, bank overdraft
advantages of being a sole trader
- get to keep all profits
- make all decision
- decides own hours and holidays
disadvantages of a sole trader
- you need to do all the work
- only paid if you work/no pay on holiday
- less funding available
- unlimited liability
what are the sectors of the economy
private, public, third (voluntary)
what are the features of a private limited company
- private sector
- owned by the shareholders
- controlled by a board of directors
- financed mainly by shareholder investments (+bank loans, savings…)
what are advantages of a private limited company
- limited liability
- easy to raise finance
- work load can be shared
disadvantages of private limited companies
- need to pay shareholders with dividends
- cant make decisions by yourself
features of a charity
-third(voluntary) sector
features of a charity
charities are organisations which have been set up to benefeit the public through their charitable purpose
- third(voluntary) sector
- no official owners, unofficialy owned by the donators.
- controlled by a board of trustees
- financed by sponsors, donation, shop profits, charity events
what is/what are features of a social enterprise
set up to raise funds for a specific issue through profit making trading activities
- controlled by a board of directors
- financed by grants, profit making activities
- asset lock, if business goes under remaining money goes to the good cause
what are goals of the public sector
provide a high quality and efficent essential service
to improve society
to make effective use of taxes
to be socilly responsible
what are the goals of private sector
- maximise profit
- to survive
- improve owners personal status
- to get a good reputation in the comunity
