Types of business ownership

Question 1

Public sector firms

Answer 1

Businesses that are owned and operated by the Government and usually funded through taxation.

Question 2

Private sector firms

Answer 2

Businesses that are owned and controlled by other firms and private individuals usually funded by owner’s capital, borrowing and retained profits.

Question 3

Occurs when government-owned firms are sold to the private sector

Answer 3

Privatisation

Question 4

Sole Trader (4 characteristics)

Answer 4

A business that has a single owner but may still hire employees. The sole trader has full control over decision-making and have unlimited liability.

Question 5

Partnership

Answer 5

A type of organization where two or more individuals agree to jointly own and operate a business with the intention of sharing profits and responsibilities.

Question 6

For profit social enterprises

Answer 6

business or organization that aims to generate revenue and achieve social,
environmental or cultural objectives

Question 7

Cooperatives

Answer 7

A cooperative is a member-owned and democratically controlled business that operates for the mutual benefit of its members.

Question 8

NGO

Answer 8

An NGO (Non-Governmental Organization) is a non-profit, independent organization that works to address social, environmental, or humanitarian issues.

Question 9

Charity

Answer 9

A charity is a non-profit organization that raises funds and provides support to address social, humanitarian, or environmental causes.