Business in Private and Public Sectors

What is the private sector?

• Businesses owned by private individuals

• Government-owned services

• Non-profit organizations

• Public schools and hospitals

What is the main objective of private sector businesses?

• Profit and growth

• Providing government services

• Non-profit goals

• Solely public benefits

What is a sole trader?

• A business owned by one person

• A government agency

• A business owned by partners

• A public-sector entity

What is a disadvantage of a sole trader?

• Unlimited liability

• Shared profits

• Government control

• None of the above

Why might a partnership be advantageous?

• Shared skills and resources

• Limited liability

• Easier tax laws

• Government support

What is unlimited liability?

• Owners risk losing personal assets for business debts

• Business owners have limited borrowing capacity

• Business owners cannot be sued

• Business risks are fully insured

How many partners are required in a partnership?

• 1 to 5

• 2 to 20

• 10 to 50

• More than 20

What is an advantage of partnerships?

• Profit is not shared

• More capital can be added

• Only one person manages the business

• Disagreements are avoided

Public sector businesses focus on providing government services.

• True

• False

Sole traders share profits with their employees.

• True

• False