Types Of Business.

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E1: Types Of Business

A business can be classified according to its “sector”. In the United Kingdom there are three sectors. The three sectors are:-

  • Public sector
  • Private sector
  • Voluntary sector

The Public Sector

This sector includes government-owned or government-controlled groups as well as public corporations such as the Post Office, the BBC, the Civil Service and local authorities such as County, Metropolitan or District Councils.

Some businesses found locally are public sector. Local sports or leisure centres may be owned by the Council and also run by the Council.

The Private Sector

This sector includes businesses privately owned directly or indirectly. This sector makes up for most businesses running within the United Kingdom. The private sector businesses cover sole traders (businesses involving one person), partnerships (groups of people in a business), limited companies (owned by shareholders) and franchise operations (where traders can buy a name and set up a business already established).

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Privatisation is an action where public sector operations have been “sold off” by the Government. This is to raise money to private sector shareholders.

The Voluntary Sector

Charities are independent groups in what is known as the voluntary sector. They include registered charities such as Oxfam.

OWNERSHIP CLASSIFICATION:

The six forms of ownership are:

Sole Trader
Businesses that are owned by one individual (also known as sole proprietorship). Here are some benefits and constraints of owning sole proprietorship, freedom in decision making and it is cheaper and easier to be established, constraints are if anything goes wrong you will ...

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