Cambridge AS A Level Business Studies/ ZIMSEC Advanced Level Business Studies/ Business Enterprise Skills Notes: Introduction To The Private Sector

  • We pointed out in the introduction to sectors that not all businesses are the same
  • Generally, a business can be either be in the public sector or the private sector
  • Here we will examine the general nature of private-sector business
  • The private sector is comprised of businesses that are owned, controlled and operated by private individuals or groups of private individuals
  • This includes businesses such as sole traders, partnerships, private limited companies and public limited companies
  • This is not a mistake, public limited companies are in the private sector
  • In the private sector, profit tends to be the main motive, generally, businesses are motivated by and seek to maximise their profits
  • Government influence is limited to regulations only for example tax, environmental and similar regulations.
  • Otherwise, businesses in the private sector are free to operate as they see fit
  • The owners are free to operate their own businesses as in the case of sole traders or to appoint managers of their choice e.g. board of directors
  • The main source of finance for private sector businesses tends to be from private sources such as the owners’ own savings, private equity or privately sourced loans

To access more topics go to the Advanced Level Business Studies page

To access more topics go to the ZIMSEC Business Enterprise and Skills page

To access more topics go to the Cambridge AS A Level Business Studies page

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