Unit 1.2- Understanding different business forms Flashcards

1
Q

What is the public sector?

A

public sector is owned and run by the government

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is the private sector?

A

private sector is own by private individuals like you and me.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are the three types of public sector businesses?

A
  • Public corporations
  • Public services
  • Municipal services
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is a public corporation?

A

Enterprises owned by the state but offer products to both public and private sector.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is a public service?

A

This provides a service to the nation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is a municipal service?

A

these are offered by local governments and councils

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is privatisation?

A

When the state(government) sells businesses that they had owned and managed to private individuals and businesses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Why would the government privatise?

A
  • Raises finance for government

- Privately run businesses are more efficient

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is a sole trader?

A

A sole trader is a business that is owned and managed by one person

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Features of a sole trader

A
Easy and cheap to set up	
Unlimited liability		
Sources of finance are limited		
Long hours
Be their own boss		
Make all decisions
Keep all the profits		
No continuity		
No specialist skills		
Stressful
Financial information kept private
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is a partnership?

A

To form a partnership there must be at least two people.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly