Learning Objective: To understand private and public sectors (mixed economies)
Chapter 2 - Classification of Businesses
We now completely understand the different sectors of an economy: primary, secondary, and tertiary. Companies within these different sectors can either be private or public:
Most economies around the world are considered to be mixed economies - in other words, economies that are made out of private and public companies simultaneously. Public and private businesses are different in their decisions:
In the private sector business' decisions are based on consumers' choices (needs and wants). Most times these businesses have profit objectives and their products and services are not made or sold (afforded) for everyone.
Public sector decisions on the other hand are made by the government and based on what most of the population needs. Public companies are not driven by profit but by their social objectives.
Explore Activity (p. 26)
To-Do-List
Exam Practice Questions (p. 27)
Chapter 2 - Classification of Businesses
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