Types of organisation / sectors of business Flashcards
What are the three types of business ownerships?
Private, public and voluntary/third sector
Who are private sector organisations owned by?
Individuals
What are private businesses driven by?
Profit
Where do private sectors get their money from?
Private money from shareholders and bank loans
Who are public sector organisations owned by?
Government
What do public sectors provide?
Services and goods
Where do public sectors get their money from?
Taxes
Who are third sector businesses run by?
Volunteers and trustees
What are third sector organisations driven by?
To help the community
Where does profit from third sector businesses go?
Reinvested into the community
What are the different types of private organisations?
Sole trader, partnership, private limited company
What is a sole trader?
Business owned by one person
What are the advantages and disadvantages of a sole trader?
A : Keep all profit to themselves
Easiest of all partnerships
D : Difficult to raise finance
Unlimited liability
What is a partnership?
A business with between two and twenty owners
What are the advantages and disadvantages?
A : Different partners bring different skills
Workload is shared
D : Unlimited liability
Profit shared between partners