Understanding Private and Public Businesses

What is a key characteristic of a private business?

• Owned by individuals or a small group

• Required to share financial information with the public

• Owned by shareholders

• Must follow strict government regulations

How do public businesses primarily raise money?

• Personal savings

• Loans from banks

• Selling shares to the public

• Government funding

Who makes decisions in a private business?

• Shareholders

• Board of directors

• Owners or a small group of people

• Government officials

What is a requirement for public businesses regarding financial information?

• Keep it private

• Share it with the public

• Only share with shareholders

• No requirement to share

Why might public businesses take longer to make decisions compared to private ones?

• They have more employees

• They need approval from a board of directors

• They have more financial resources

• They operate in more countries