The private sector are all the businesses that are owned by private individuals and they are centred around profit and growth. The sector is split into two groups: unincorporated and incorporated
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What is the public sector?
The public sector are all the businesses and other organisations that are controlled by central or local government
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What are the two unincorporated businesses?
Sole traders and partnership businesses
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What is a sole trader?
A sole trader is one person who owns a business
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What are some advantages of being a sole trader?
Flexible working, own boss, financial information kept private, keep the profit, very little start up capital
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What are some disadvantages of being a sole trader?
Unlimited liability, no support, not much motivation, shortage of skills and knowledge, continuity
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What is a partnership business?
A partnership is a business that is owned, financed and controlled by 2-20 people
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What is a sleeping or silent partner?
This is a person who has invested capital into a business but doesnt take part in the running of the business
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What are some advantages of a partnership business?
more skills and knowledge, more people to share work load, soemone to cover you when you're ill
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What are some disadvantages of a partnership business?
unlimited liability, different ideas, conflicts
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What is a deed of partnership?
A deed of partnership is a a drawn up legally binding agreement where information is agreed on how the business operates and how the profits are split
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What is a franchise?
A franchise is an agreement of which one business (called the franchisee) buys the right to sell the goods or services of another business ( called the franchisor ) and is allowed to use the franchisors name
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How does a franchise work?
The franchisee pays start up fees and regular royalty payments to the franchisor and in return will have the right to sue the company name, logo and store designs and products
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What are some advantages of being a franchisor?
You can expand the business without having to raise the capital
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WHat are some disadvantages of being a franchisor?
Loss of some controll over the business, can only sell the product and service to the franchise, an error made by franchisee can effect the franchise image
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What are some advantages of being a franchisee?
more chance of sucess and less risk, help and support provided
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Disadvantage of being a franchisee?
must run the business exactly how franchise wants
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What is a social enterprise?
They are formed to provide help within social, they may provide feneral support or deal with specific issues. They may attempt to raise awareness or provide a solution to society's problems
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What are three amin social enterprise organisations?
charity, co-operatives, voluntary organisation
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What is a consumer co-operative?
A consumer co-operative is owned by it's customers. They usually pay a subscription and recieve a share of any profits made in return
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What is a worker co-operative?
A worker co-operative is a business that is owned and controlled by the whole work force. Peopl;e who work within the business are in controll rather than outside shareholders. Everyone pays a part in the decision making
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What is a producer co-operative?
Producer co-operatives are usually established by small producers. An example of producers co-operatives is farmers. A number of farmers get together to sell milk to dairies as though they are one business
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What is a charity?
An organisation taht arims to raise money in order to support a cause
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What are soem advantages of being a co-operative?
Members feel they have a real impact on running the business, profits are distributed fairly amoung members, better customer service
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What are some disadvanatges of a co-operative?
May be difficult to recruit top quality management, decision making could be difficult and may take a long time
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Other cards in this set
Card 2
Front
What is the public sector?
Back
The public sector are all the businesses and other organisations that are controlled by central or local government
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