A business, also known as an enterprise, company or a firm is an organizational entity involved in the provision of goods and services to consumers.
Reasons for establishing a business
To produce goods and service
To create jobs
To make profit (private investments)
To provide goods or services to benefit the community (public sector/non-profit organization)
To contribute to economic growth
Types of Businesses in the Private and Public Sector
In mixed economies like ours, businesses are classified into two types depending on ownership. These are the private sector and the public sector.
Private Sector The private sector is that part of the economy that is funded by private individuals and is, therefore own an controlled by private firms. The objective of the private sector is to make a profits.
Examples of Private Sector
One-owner business such as a small shop on the street
The family-owned business
The large business with several investors
Multinational businesses (Digicel)
Firms in the private sector have the following common features
the aim is to make profit
profits are shared among shareholders or those who invest in the company
the business is funded by the owners
there is little or no government control
the business is funded by private individuals
Public Sector
The public sector is that part of the economy that is financed by the Government though taxpayers and is controlled and operated by the Government or its agents.
Activity: This activity will help you identify Public and Private sector businesses in Jamaica
Classify the following businesses as Private Sector or Public Sector business.
* Correction: Catherine Hall Primary School
FORMS OF BUSINESS ORGANIZATION
An organization is a system that groups people together towards establishing a common goal. Business organizations are centred on creating goods and services for profit. There are several types of business organizations that one can start.
A business can be organized in one of several ways, and the form its owners choose will affect the companies and owners' legal liability and income tax treatment. All forms of business organizations can either be characterized as a part of the private sector or the public sector.
Information is only available for Sole trader, Partnership, Cooperatives and Companies. Information will be provided for the others as soon as possible.