Firms owned by shareholders and individuals belong to which sector?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $9.99Unlock all

Study for the IGCSE Economics CIE Section 2 on resource allocation. Practice with flashcards and multiple-choice questions, each with hints and explanations. Prepare for success!

Multiple Choice

Firms owned by shareholders and individuals belong to which sector?

Explanation:
Ownership and who controls the business define its sector. When a firm is owned by private individuals or by shareholders who invest capital to earn profits, it sits in the private sector, which covers all non-government businesses aiming to earn profits. The public sector includes government-owned organizations like state-run hospitals and schools. The market, meanwhile, is the arena where buyers and sellers interact; it is not a sector of ownership. So firms owned by shareholders and individuals are part of the private sector.

Ownership and who controls the business define its sector. When a firm is owned by private individuals or by shareholders who invest capital to earn profits, it sits in the private sector, which covers all non-government businesses aiming to earn profits. The public sector includes government-owned organizations like state-run hospitals and schools. The market, meanwhile, is the arena where buyers and sellers interact; it is not a sector of ownership. So firms owned by shareholders and individuals are part of the private sector.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy