IGCSE, A Level Business Student Forum

KN: A government might nationalise a failing private business to protect jobs and prevent mass unemployment.
APP: For example, if a large manufacturing company is about to collapse, the government can take ownership to keep it running.
AN: This protects workers from losing their income, maintains ...

KN: Providing essential services like healthcare is often done by the public sector to ensure access for all.
APP: For example, government hospitals offer medical treatment to everyone, regardless of whether they can afford it, while private hospitals may only serve paying patients.
AN: This ensures ...

KN: One potential problem of a state-owned business is inefficiency.
APP: For example, because there is no profit motive, a government-owned factory may not try to reduce costs or improve productivity.
AN: This can lead to higher operating costs and wasted resources. Over time, the business may ...

KN: The main difference between a public sector and a private sector business is ownership and purpose. Public sector businesses are owned and controlled by the government, while private sector businesses are owned by individuals or companies.
APP: For example, a government-owned railway focuses on ...

KN: One main objective of a public sector business is to provide essential services to the public.
APP: For example, a government hospital offers free or affordable healthcare to ensure everyone can receive medical treatment.
AN: This helps improve people’s quality of life and supports social ...

KN: One legal formality required to set up a private limited company is to register the business with the government authorities.
APP: For example, in the UK companies must register with Companies House, while in Pakistan they register with the SECP.
AN: This process makes the business officially ...

KN: A sole trader may find it difficult to raise finance because banks see this type of business as high risk.
APP: For example, since the business depends on one person and has unlimited liability, there is a higher chance it could fail if the owner becomes ill or makes poor decisions.
AN: This ...

KN: A main difference between a sole trader and a private limited company is their liability.
APP: A sole trader has unlimited liability, meaning the owner is personally responsible for all business debts, while a private limited company has limited liability, so owners only lose the money they ...

KN: An entrepreneur might choose to set up a private limited company because it offers limited liability.
APP: For example, if the business faces losses or debts, the owner’s personal assets such as their house or car are not at risk.
AN: This protection reduces the owner’s personal financial risk ...

KN: One advantage of forming a partnership is that partners bring different skills and ideas to the business.
APP: For example, one partner may be good at finance while another focuses on marketing, allowing them to manage the business more effectively.
AN: This combination of skills leads to better ...

KN: One feature and advantage of a sole trader is that the business is owned and controlled by one person.
APP: For example, a small shop owner can make all business decisions independently without needing anyone’s approval.
AN: This helps decisions to be made quickly, which saves time and allows ...

KN: One positive impact of de-industrialisation is the growth of higher-skilled and better-paid jobs in the tertiary sector.
APP: For example, as manufacturing declines, more people are employed in industries such as finance, IT, and education.
AN: These jobs usually offer higher wages and better ...

KN: Global competition can lead to de-industrialisation in a developed country because foreign producers can often make goods at lower costs.
APP: For example, factories in the UK may struggle to compete with cheaper goods made in China, where wages and production costs are lower.
AN: As a result ...

KN: A country might move from the primary to the secondary sector because manufacturing creates higher profits than raw materials.
APP: For example, turning cotton into clothes is more profitable than just selling raw cotton.
AN: This encourages businesses and governments to invest in factories ...

[KN] A country’s government is a major employer in the tertiary sector because it provides essential public services required to run any state.
[APP] For example, it employs teachers in schools, doctors and nurses in hospitals, police officers for safety, and civil servants to manage government work ...