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IGCSEAccountingEdexcelIntroduction to Bookkeeping & AccountingRevision NotesThe Accounting EnvironmentTypes of Business OrganisationPrivate & Public Sector Organisations

Private & Public Sector Organisations (Edexcel IGCSE Accounting): Revision Note

Exam code: 4AC1

Dan Finlay

Written by: Dan Finlay

Reviewed by: Lucy Kirkham

Updated on

What are the key classifications of a business?

  • A business can be classified using the following categories:

    • Type of sector

      • Private sector

      • Public sector

    • Type of organisation

      • Sole trader

      • Partnership

      • Private limited company

      • Public limited company

      • Society, club or charity

Businesses can operate as sole traders, partnerships, private limited companies or public limited companies
Businesses can operate as sole traders, partnerships, private limited companies or public limited companies

Private & public sector organisations

What are the differences between private and public sector organisations?

  • The differences between private and public sector organisations are summarised in the following table

Private sector organisation

Public sector organisation

Aim of the business

To make a profit

To provide a service to the public

Ownership of the business

Owned by individuals

Owned by the Government

Funding of the business

Money invested by the owners

Money generated from taxes

Examples

  • Restaurants

  • Retail stores

  • Mechanics

  • National Health Service (NHS)

  • State schools

  • Police

  • Examples of private sector organisations include:

    • Restaurants

    • Retail stores

    • Mechanics

  • Examples of public sector organisations include:

    • National Health Service (NHS)

    • State schools

    • Libraries

    • Emergency services

    • Public transport

The public sector includes emergency services, transportation, health and education organisations
Examples of public sector organisations

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    Author
    Reviewer
    Dan Finlay

    Author: Dan Finlay

    Expertise: Maths Subject Lead

    Dan graduated from the University of Oxford with a First class degree in mathematics. As well as teaching maths for over 8 years, Dan has marked a range of exams for Edexcel, tutored students and taught A Level Accounting. Dan has a keen interest in statistics and probability and their real-life applications.

    Lucy Kirkham

    Reviewer: Lucy Kirkham

    Expertise: Head of STEM

    Lucy has been a passionate Maths teacher for over 12 years, teaching maths across the UK and abroad helping to engage, interest and develop confidence in the subject at all levels.Working as a Head of Department and then Director of Maths, Lucy has advised schools and academy trusts in both Scotland and the East Midlands, where her role was to support and coach teachers to improve Maths teaching for all.