There are five different types of private sector businesses; sole traders, partnerships, private limited companies, public limited companies, co-operatives. Sole trader is a business owned by one private person. It is the most common business enterprise. Partnership is a group or association of at least two people who agree to own and run a business together. Private limited companies are small businesses and aren’t run on the stock market. However, public limited companies are huge businesses run on the stock market. Co-operatives are businesses run by all the partners, bearing the profit and loss.
Tag: Private Sector
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Private and Public Sectors of a Business
A business is divided in two sectors, private sector and public sector. Private sector is the ones that is owned and run by private people and government doesn’t interfere in it. Organisations in this sector are profit intensive. Public sector is the one run and owned by the government. Organisations working under the public sector are consumer intensive as they are set up to provide public services and are a part of economic development of a country.