The sector which is owned and controlled by private individuals rather than the
government is known as the PRIVATE SECTOR. Usually, their goal is to make a profit.
The sector which is owned and controlled by the government is known as the PUBLIC
SECTOR. They traditionally provide essential goods and services.
A SOLE TRADER is an individual who runs and owns a personal business. The owner is
held responsible for its success or failure.
A PARTNERSHIP is a profit-seeking business owned by two or more persons. For
ordinary partnerships, the maximum number of owners is 20 (although this can vary
from one country to another).
DEED OF A PARTNERSHIP (Partnership deed) is the legal agreement between the
partners before starting the business.
A SILENT PARTNER is an individual who provides funding to a business as his only
contribution and is eligible for a portion of the profit.
COMPANIES are businesses owned by their shareholders.
SHAREHOLDERS are individuals or other businesses that have invested money to
provide capital for a company.
A LIABILITY is a financial obligation of a company that results in the company's
future sacrifices of economic benefits to other entities or businesses.
LIMITED LIABILITY is a legal status where a person's financial liability is limited
to a fixed sum, most commonly the value of a person's investment in a corporation,
company, or partnership.
UNLIMITED LIABILITY is a legal status where a person’s financial liability is
unlimited to a fixed sum.
A PRIVATE LIMITED COMPANY is a company that cannot raise share capital from the
general public. Instead, shares are sold to private family members and friends.
A PUBLIC LIMITED COMPANY is a company that can raise share capital from the general
public via a stock exchange.
SOCIAL ENTERPRISES are revenue-generating businesses with social objectives at the
core of their operations.
COOPERATIVES are for-profit social enterprises owned and run by their members, such
as employees or customers, with the common goal of creating value for their members
by operating in a socially responsible way.
CONSUMER COOPERATIVES are owned by the customers who buy the goods and/or services
for personal use.
WORKER COOPERATIVES are set up, owned, and organized by their employee members.
PRODUCER COOPERATIVES are cooperatives that join and support each other to process
or market their products.
MICROFINANCE is a type of financial service aimed at entrepreneurs of small
businesses, especially females and those on low incomes.
PUBLIC-PRIVATE PARTNERSHIPS occur when the government works together with the
private sector jointly providing certain goods and services.
NON PROFIT SOCIAL ENTERPRISES are businesses run in a commercial-like manner but
without profit being the main goal.
NGO is a non-profit social enterprise that operates in the private sector, i.e. it
is not owned or controlled by the government.
A CHARITY is a non-profit social enterprise that provides voluntary support for
good causes (from society's point of view), such as the protection of children,
animals, and the natural environment.
