• Chapter 2 exam solutions
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  • 1a. Identify two forms of business organisation (other than supermarkets and fish canning) found in the private sector.
    Examples: sole trader, partnership, private limited company (Ltd), public limited company (PLC), franchise.
  • 1b. Define 'public sector'.
    The part of the economy owned and controlled by the government that provides goods and services.
  • 1c. Outline how the decisions about 'what to produce' and 'how to produce' are made in the private sector of a mixed economy.
    Decisions are based on consumer demand (what to produce) and profit motives. Firms decide how to produce based on costs, efficiency, and competition,...
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