A common feature of the commercial (for-profit) businesses is the aim to generate profit.

Social enterprises, including cooperatives and non-governmental organisations, operate in the public sector of the economy.

Sole traders do not have to work alone and can employ as many employees as needed.

Unlimited liability is an advantage of being a sole trader.

Businesses owned and run by the government operated in the public sector.

Partnerships provide the opportunity for all owners to have limited liability.

The provision of goods and services that are not provided by private businesses is a major objective of the public sector.

Having limited liability means that owners of a business can only lose the money they have invested, and no more.

A business that is owned and operated by one person is known as a sole trader.

Business organisations that are run and owned jointly by their members are known as co-operatives.

The legal agreement that sets out the rules of how a partnership will operate is known as a memorandum of association.

A drawback of being a sole trader is that the workload for the owner can be extremely high.

An unincorporated business is a separate legal entity from its owner(s).

Shareholders are joint owners of a publicly held company.

Privately held companies are owned by stakeholders.

The first time the shares of a public limited company are offered for sale on a stock exchange is called an Initial Public Offering (IPO).

A sole trader is unlikely to be able to exploit economies of scale.

Silent partners provide additional capital to a business without having any direct role in the running of the business.

The shares of privately held companies can be advertised for sale and sold via a stock exchange.

All for-profit social enterprise operate in the private sector.

All social enterprises operate for profit.

Sole traders operate in the private sector.

Publicly held companies operate in the public sector.

Non-governmental organisations (NGOs) operate in the private sector.