← Back to Articles

Types of Businesses

Jamie Z 2024-01-24

Learning Goals

I will be able to

  • Explain how the Public Sector differs from the Private Sector
  • Describe characteristics of the three main types of industries

Public Vs Private Sector

Public Sector

  • The public sector represents the segment of the economy that is owned/operated by the government
  • These organisations typically do not seek profit and often provide public services to the governments citizens

Private Sector

  • All privately owned commercial enterprises that are owned and operated by individuals and for-profit companies
Private Public
Harry’s Handyman Services Australian Broadcasting Corporation
Coles Reserve Bank Of Australia
Commonwealth Bank Australian Bureau of Statistics
Garden City Medical Centre Fair Work Commission

💡 Public Vs Private The key distinction between private and public businesses lies in their ownership structure. Private businesses are owned by individuals, families, or a small group of investors and are not traded on stock exchanges. Public businesses, on the other hand, have shares that are traded on stock exchanges, and ownership is distributed among a large number of public shareholders.

The key distinction between private and public businesses lies in their ownership structure. Private businesses are owned by individuals, families, or a small group of investors and are not traded on stock exchanges. Public businesses, on the other hand, have shares that are traded on stock exchanges, and ownership is distributed among a large number of public shareholders.

Types of Industries

  1. Primary - Includes businesses that are involved in gathering natural resources that that they may be used in the manufacturing industry
  2. Secondary - Transforming natural resources and adding value by processing or manufacturing
  3. Tertiary - Involve enterprises that provide services that sell products
  4. Quaternary - Intellectual activities, Technological innovation
  5. Quinary - highest level of decision making in a society or economy

Cacao Bean ———> Chocolate Processing Factory ———> Chocolate bars sold on shelves

Australian Bureau of Statistics

Australia’s national statistical agency in providing statistics on a range of economic, social, population and environmental matters

Some business indicators it reports include

  1. Sakes
  2. Profits
  3. Turn-over
  4. Expenses