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Outline the reasons why people set up their own business.

They would try to run a business because they want to gain profit and earn money.

Some of them also will try to run a business just to experience the “ business world”

2. Why Is the concept “limited liability” important for investors?

Because when you lose money, they wont take your personal assets in return for the profit lost.

3. Compare and contrast the benefits of running a business as a partnership with those of a sole trader.

Benefits of running a business as a partnership you get more financial strength, division of labor. You get more profit because all of the income goes to your pocket.

4.What is the difference between a public corporation and a private company?

Public corporation associates with the government but a private company Cannot raise share capital from the general public.

5. What are non profit organizations and non government organizations?

Non profit organizations Is run in a professional and business like manner without profit being the major objective. Instead they provide a services or promote special causes (e.g. libraries, schools, museum, government hospitals). Non government organizations: They are funded by the government but run by people independent of the government E.g. National tourist boards, environmental agencies.

6. What is the difference between ‘public goods’ and ‘merit goods’

Public goods - Funded by the government. Products and services that are enjoyed by the general public and would be unlikely provided without government intervention.

Merit Goods - are products that yield higher social benefits. Private firms who offer products or services normally funded by the government. e.g. fee paying schools, private hospitals.

7. What is a public-private enterprise?

8. Outline the benefits of public-private enterprises and partnerships to society.