Commercial Operations: Commercial Enterprises: Types Of Private And Public Sector Enterprises (Copy)
Cheat Sheet: 2.1.2 Types of Private and Public Sector Enterprises
| Type | Features | Examples |
|---|---|---|
| Sole Trader | One owner, keeps all profits, unlimited liability, easy to set up | Local grocery shop, barber |
| Partnership | 2–20 owners, shared profits and risks, unlimited liability | Law firms, medical practices |
| Cooperative | Owned/operated by members for mutual benefit, democratic control | Farmers’ cooperatives |
| Private Limited Company (Ltd) | 2–50 shareholders, limited liability, shares not sold publicly | Family-owned businesses, small firms |
| Public Limited Company (Plc) | Shares sold on stock exchange, large capital, limited liability, strict regulations | Shell, Unilever |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
| Public Corporation | Features | Reasons for Existence |
|---|---|---|
| Definition | Business owned/controlled by government, usually providing essential services | Pakistan Railways, NHS (UK) |
| Reasons | Provide essential goods/services; prevent exploitation; support industries needing high capital; create employment; ensure national security |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
| Ownership Type | Advantages | Disadvantages |
|---|---|---|
| Sole Trader | Quick decisions, keeps all profit | Unlimited liability, limited finance |
| Partnership | Shared skills, more finance | Disagreements, unlimited liability |
| Cooperative | Shared risk, democratic | Slow decisions, limited profit |
| Private Ltd | Limited liability, control stays with family/friends | Shares not easily sold, less capital |
| Public Ltd | Access to large capital, limited liability | Loss of control, stricter regulations |
| Public Corporation | Provides essentials, stable jobs | Inefficiency, political interference |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
| Appropriateness in Situations | Best Fit Ownership Type |
|---|---|
| Small local shop | Sole Trader |
| Professional firm (e.g., lawyers/doctors) | Partnership |
| Farmers pooling resources | Cooperative |
| Family business wanting limited liability | Private Ltd |
| Large multinational raising huge capital | Public Ltd |
| Essential service (e.g., transport, energy) | Public Corporation |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course