Sectors of economy

Question 1

What are the three ‘sectors of economy’

Answer 1

• private
• public
• third

Within each sector of the economy their are different types of businesses with different aims and objectives.

Question 2

Private Sector

Answer 2

Private sector organisations, such as a local news agent or large supermarket chain are owned and controlled by private individuals. Their primary aims are to survive and make a profit.

Question 3

Types of organisations that are private sector.

Answer 3

• sole trader (a business owned and controlled by one person)
• partnership (a business owned and controlled by 2-20 people)
• private limited company (ltd) (a business that sells shares privately to invited members)

Question 4

Public Sector

Answer 4

Public sector organisations are owned and controlled by the government.

They aim to provide a service to the public and are funded by taxes.

Public sector organisations function in areas such as health, education, housing and social work.

Question 5

Types of organisations in public sector

Answer 5

• national government
• local government

Question 6

Types of organisations that would be in the third sector are:

Answer 6

• charities (A business set up to raise awareness or funds a cause)
• voluntary organisations
• social enterprise (a business that aims to help a social cause)

Question 7

Third sector

Answer 7

Third sector organisations are set up to help a cause or provide a service to members. They’re aim is to raise money and increase awareness for good causes.