Summary A Level Business: Business Structure Study Notes

A Level Business: Business Structures

Different forms of businesses:

● Sole trader

● Partnerships

● Private Limited Companies (Ltd.)

● Public Limited Companies (PLC)

● Public Sector Organisations

● Non-profit organisations like charities

(These will be explained in further detail later on)



Public Sector:

● Public sector businesses are owned and financed by the government.

● Their main aim is to provide a service to society.

● Any money made after costs are called a surplus that is invested back into the business

● Provides public goods and merit goods.



Public good – is a service that is only provided by the government.

Merit good – is a service that is deemed to be beneficial for society but is under-provided.



Public sector businesses have two main characteristics:

● Non-rivalry – The consumption of the good by one individual does not reduce the amount
available for others.
● Non- excludability – it is impossible to exclude others from benefitting from their use.

Aims of a public sector business:

● Provide services that nobody else is willing to provide.

● Provide merit goods to raise standard of living.