Private Sector & Public Sector
This sector is made up of government-owned organizations that provide services like schools and hospitals.
What is the public sector?
Who is legally responsible if sole trader's business goes into debt?
The sole trader (unlimited liability)
Which type of social enterprise is legally allowed to distribute profits to owners/shareholders?
For-profit social enterprise.
A group of farmers pooling resources to sell crops together is an example of this.
What is a cooperative?
Which NBA team plays its home games at Madison Square Garden?
A city-run water company is an example of this sector.
What is the public sector?
One advantage and one disadvantage of being a sole trader.
Advantage = keep all profits, sole decision making, easier to start up.
Disadvantage = unlimited liability
Non-profit reinvest any surplus back into what?
Their mission/social causes, not owners or shareholders.
True or False: In a cooperative, each member usually has one vote, no matter how much money they invested?
True
This pop star is known as the "Queen of Pop" and first rose to fame in the 1980s.
Who is Madonna?
Ture or False: A government-owned railway company belongs to the private sector.
False
Partnerships can bring in more skills and money, but what major risk do they share?
Each partner may be liable for debts or bad decisions of others.
How would funding sources likely differ between a non-profit and a for-profit social enterprise?
Non-profits rely on donations/grants; For-profits rely on sales/profit
If you were starting a cooperative bookstore, how would ownership and decision-making differ from a regular bookstore chain?
Members/customers own it collectively, decisions made democratically instead of by a single owner.
This is the largest planet in our solar system.
What is Jupiter?
Explain why private sector companies usually aim for profit, while public sector organizations often do not.
This is because the private sector is owned by individuals/investors seeking return, while public sector is funded by taxes to provide services.
Compare: What is the main difference between how privately held companies and publicly raise capital?
Privately held = from select investors; Publicly held = selling shares on stock exchange
Many __________ depends heavily on donations. What is one potential risk of relaying too much on this funding model?
Non-profit; If donations drop, the organization may not be able to sustain its programs or staff.
Unlike traditional corporations where voting power depends on shares owned, this principal of cooperatives ensures that every member has an equal say in decision-making, regardless of investment size.
What is the principle of "one member, one vote?"
What fast food chain once used the slogan "Think outside the bun"?
Taco Bell
What could happen if an essential public service (like electricity) was run only by private sector companies?
Possible answers: higher prices, inequality in access, efficiency, and innovation.
Why might a family-owned company choose to stay private rather than go public?
To retail control, avoid outside pressure, and keep financial information private.
This type of social enterprise is most susceptible to "mission drift." Name the type and why this is true.
For-profit social enterprises are most susceptible to "mission drift." This is because they face the challenge of profit motives overshadowing social goals.
When NGOs deliver essential services like healthcare or education in place of weak governments, critics argue this can unintentionally undermine long-term development. What is this dilemma called?
What is the NGO dependency dilemma. This is the risk of weakening government capacity by replacing rather than supporting it.
What do you call a group of flamingos?
A flamboyance.