A Level Business: Business Structures
Different forms of businesses:
● Sole trader
● Partnerships
● Private Limited Companies (Ltd.)
● Public Limited Companies (PLC)
● Public Sector Organisations
● Non-profit organisations like charities
(These will be explained in further detail later on)
Public Sector:
● Public sector businesses are owned and financed by the government.
● Their main aim is to provide a service to society.
● Any money made after costs are called a surplus that is invested back into the business
● Provides public goods and merit goods.
Public good – is a service that is only provided by the government.
Merit good – is a service that is deemed to be beneficial for society but is under-provided.
Public sector businesses have two main characteristics:
● Non-rivalry – The consumption of the good by one individual does not reduce the amount
available for others.
● Non- excludability – it is impossible to exclude others from benefitting from their use.
Aims of a public sector business:
● Provide services that nobody else is willing to provide.
● Provide merit goods to raise standard of living.
Different forms of businesses:
● Sole trader
● Partnerships
● Private Limited Companies (Ltd.)
● Public Limited Companies (PLC)
● Public Sector Organisations
● Non-profit organisations like charities
(These will be explained in further detail later on)
Public Sector:
● Public sector businesses are owned and financed by the government.
● Their main aim is to provide a service to society.
● Any money made after costs are called a surplus that is invested back into the business
● Provides public goods and merit goods.
Public good – is a service that is only provided by the government.
Merit good – is a service that is deemed to be beneficial for society but is under-provided.
Public sector businesses have two main characteristics:
● Non-rivalry – The consumption of the good by one individual does not reduce the amount
available for others.
● Non- excludability – it is impossible to exclude others from benefitting from their use.
Aims of a public sector business:
● Provide services that nobody else is willing to provide.
● Provide merit goods to raise standard of living.
