Private/public sectors and limited/unlimited liability

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What is the private sector?
includes all businesses that are owned by private individuals and groups.
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Give four example of businesses in the private sector
Sole traders, partnerships, Private limited companies and public limited companies.
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What is the public sector?
Includes all the organisations that are controlled by the government. Focus on customers service and are non-profit making.
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Give five examples of organisations that belong in the public sector
NHS, fire service, schools, local government and police
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What is limited liability?
If the company goes into debt, the investor only loses the amount of his investment and is not rquired to pay back creditors any money.
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Who does limited liability apply to?
private limited companies and public limited companies
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What is unlimited liability?
The business must pay back its creditors, even if this means they have to sell personal assets such as property and cars.
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Who does unlimited liability apply to?
Sole traders and partnerships
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Other cards in this set

Card 2

Front

Give four example of businesses in the private sector

Back

Sole traders, partnerships, Private limited companies and public limited companies.

Card 3

Front

What is the public sector?

Back

Preview of the front of card 3

Card 4

Front

Give five examples of organisations that belong in the public sector

Back

Preview of the front of card 4

Card 5

Front

What is limited liability?

Back

Preview of the front of card 5
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