Types Of Business

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Types Of Business

Businesses can be divided into 3 sectors, the private, public and voluntary sector. The voluntary sector covers organisations such as charities and businesses that do not make a profit. People who work for these organisations do not get paid for their work although they do have a total annual income of over £15bn. £4bn of this money comes from private donations, fundraising and charity shops. This money is then used by the charity for things such as medical research. The private sector divides into 3 further parts. These are:

* The personal sector

* The corporate sector

* The financial sector

The personal sector makes economic decisions and finds out information about individuals and households such as how much income people earn, how they spend their money and how much they save. All this information directly affects the economy as it generates demand for goods and services. The corporate sector includes businesses privately owned. Almost all businesses are in the private sector except for charities.

Finally, the financial sector deals with the financial side of things. This includes financial institutions such as banks and some building societies. Their role is