Private and Public Sector

Which of these are features of the Public Sector

• Provides public goods

• Helps reduce inequality in society

• Less bureaucracy

• Creates jobs to fill market gaps

The private sector creates opportunities for entrepreneurs to enter the free market

• True

• False

A (a)   is an individual who owns their own business

Identify features of a Sole Trader

• Simplest form of business structure

• Gives owner full control of business decisions

• Has limited liability

• Can employ people to help with the running of the business

A partnership has limited liability

• True

• False

What is one advantage of being a Sole Trader?

What is one disadvantage of being in a Partnership?

When the business owner is personally responsible for any loss the business makes.

(a)  

The following features describe which type of business structure:

Shared profits

Unlimited Liability

2 or more owners

• Trust

• Partnership

• Company

• Government Business Enterprise

What is the definition of Limited Liability?

• A person's financial liability is limited to a fixed sum, most commonly the value of a person's investment

• owners who are legally responsible for any debt their business might accrue

•  The sector of the economy under the control of the government at a federal, state and local level