BUSINESS AND MANAGAMENT WORKSHEET

2022 – 2023
Bianca Chica
NAME: ______________________________________ A
1ERO. EGB: _____
TEACHER: Tatiana Barzallo Carrillo 25 08 22
DATE: ___/___/_____

1. Answer these questions in more than one paragraph

2. Upload your work at the end of the class to IDUKAY
3. Need to use APA 7 standards for quoting and references

What is the difference between private sector and public sector organizations?
2
Public sector organizations are owned, controlled and managed by the government or
other state-run bodies. Private sector organizations are owned, controlled and
managed by individuals, groups or business entities.

State three differences between a sole trader and a private limited company.
The overall biggest difference between a sole trader and a limited company is that a
sole trader is owned and controlled by one person who has unlimited personal liability
for the business whereas a limited company will have its ownership split into equal
shares.

Who (a) owns and who (b) controls a public limited company? Explain Why
this distinction might lead to conflict. 2
Shareholders are the owners of a public limited company, but they appoint a board of
directors who control and make decisions of the business. This distinction might lead to
conflict because owners and directors might have different objectives.

Why might the directors of a public limited company decide to convert the
business back into a private limited company by buying many of the shares? 2
There are various reasons why a private company might want to become a public
limited company, but the most common reason is to raise money in the public market
by issuing shares. Investors who are eligible to participate in the stock market will be
now able to trade a piece of the company.

Using the examples of a sole trader business and a public limited company,
explain how the relationship between ownership and control differs in these
two types of organizations.
Sole trader business - single owner has complete control. Public limited company - the
shareholders own the company, but the board of directors controls the company. Sole
traders have unlimited liability while limited companies have the benefit of limited
liability.

Using the examples of a partnership and a public limited company, explain how
the legal structure of a business affects its ability to raise finance.

Explain two potential advantages to a country when its government uses Private
Finance Initiatives to pay for new motorways.