LO1-Different types of businesses

?
Business Activity- PRIMARY
The key purpose of businesses involved in primary activity is to gather raw materials by mining, fishing, agriculture, oil/gas extraction. Countries in the early stages of industrial development employ most people in primary activity (eg. Many Africa
1 of 13
Business Activity-SECONDARY
The key purpose of businesses involved in secondary activity is to make products by manufacturing (eg. cars), processing (eg. food), assembling (eg. TVs), or constructing (eg. houses). They use the raw materials from primary activity businesses.
2 of 13
Business Activity-TERTIARY
The key purpose of businesses involved in tertiary activity is to sell goods or provide services. Services include hairdressing, banks, transport. As countries become more industrialised and the demand for services increases.
3 of 13
Sectors- PRIVATE
Businesses operating in the private sector aim to make a profit. These businesses are owned by private individuals or groups of shareholders (eg. sole traders, partnerships, LTDs, PLCs)
4 of 13
Sectors-PUBLIC
Organisations operating in the public sector are run by the government and provide a wide range of public services like healthcare and education.
5 of 13
Sectors-THIRD SECTOR
These are organisations which do not aim to make a profit, and are not government owned. They rely on donations, fundraising and grants eg. CAFOD
6 of 13
Legal Business Ownership- SOLE TRADER
Small business, owned and run by one person (though they may employ a few staff). Eg. Window Cleaner, Florist, Hairdresser.
7 of 13
Legal Business Ownership- PARTNERSHIP
A business with 2-20 owners (called Partners). The Partners must set up a partnership agreement (or contract) called a Deed of Partnership which states how much each partner has contributed, everyone’s role, and how the profits will be divided.
8 of 13
Legal Business Ownership- PRIVATE LIMITED COMPANY
Business has a separate legal entity from its owners. The company is owned by shareholders who invest their own money in the business.
9 of 13
Legal Business Ownership- PUBLIC LIMITED COMPANY
Business has a separate legal entity from its owners. The company is owned by shareholders. Shares can be bought and sold on the stock market.
10 of 13
Legal Business Ownership-STATE/GOVERNMENTAL OWNED
These organisations are in the PUBLIC SECTOR.Eg. BBC, NHS Government sets aims/objectives Organisations are run be a Board of Directors These organisations do not make profits.
11 of 13
Legal Business Ownership-CHARITY/NOT FOR PROFIT
These businesses are in the THIRD SECTOR The business has a separate legal entity from its owners. charitable aims other than making money Profits (often called ‘surpluses’) are reinvested.
12 of 13
Legal Business Ownership-COMMUNITY INTEREST COMPANIES
These are limited companies that aim to benefit the community or trade with a social purpose rather than earn high profits. Shareholders may get a small share of the profit, but most is reinvested.
13 of 13

Other cards in this set

Card 2

Front

The key purpose of businesses involved in secondary activity is to make products by manufacturing (eg. cars), processing (eg. food), assembling (eg. TVs), or constructing (eg. houses). They use the raw materials from primary activity businesses.

Back

Business Activity-SECONDARY

Card 3

Front

The key purpose of businesses involved in tertiary activity is to sell goods or provide services. Services include hairdressing, banks, transport. As countries become more industrialised and the demand for services increases.

Back

Preview of the back of card 3

Card 4

Front

Businesses operating in the private sector aim to make a profit. These businesses are owned by private individuals or groups of shareholders (eg. sole traders, partnerships, LTDs, PLCs)

Back

Preview of the back of card 4

Card 5

Front

Organisations operating in the public sector are run by the government and provide a wide range of public services like healthcare and education.

Back

Preview of the back of card 5
View more cards

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all Unit 1- different types of businesses resources »