business
- Created by: katier1234
- Created on: 12-11-19 21:22
View mindmap
- Business Ownership- continued
- State/ government owned
- These organisations are in the PUBLIC SECTOR. Most others are in the PRIVATE SECTOR Eg. BBC, NHS
- Government sets aims/objectives
- Organisations are run be a Board of Directors
- These organisations do not make profits
- Benefits
- Industries that are vital for the country are supported here eg. healthcare
- Government can support large, important businesses that are struggling to survive eg. RBS (bank)
- Drawbacks
- Large businesses/industries may be inefficient due to diseconomies of scale, and may charge high prices
- Can be used for political gain eg. create more jobs despite increased costs
- Charity/Not-for-Profit Eg. Cancer Research, Bluebellwood.
- These businesses are in the THIRD SECTOR
- The business has a separate legal entity from its owners (it can own property in the name of the company; it can sue and be sued)
- They have charitable aims other than making money
- Profits (often called ‘surpluses’) are reinvested
- Benefits
- Small charitable groups are like Sole Traders (see benefits)
- Large charitable groups are like LTDs (see benefits)
- Drawbacks
- Small charitable groups are like Sole Traders (see drawbacks)
- Rely a lot on volunteers
- State/ government owned
Comments
No comments have yet been made