Hal wants to be a successful entrepreneur．He plans to leave his job to start up a bakery．The bakery will operate in the private sector．The business will have many stakeholder groups．Hal has been told it is important for a new business to select an appropriate source of start－up capital．He also knows new businesses are at a greater risk of failure．（a）Define＇private sector＇． .......................................................................................................................................

Business

IGCSE&ALevel

CAIE

Exam No：0450_s25_qp_12 Year：2025 Question No：3(a)

Answer:

Award 2 marks for a full definition. Award 1 mark for a partial definition.
- (When business activities are) owned by individuals [2]
- (The part of the economy that is) controlled by individuals and companies for profit [2]

Partial definition e.g.
- Not government/state controlled [1]
- Run/controlled by individuals [1]

Knowledge points:

1.2.1.1 Basis of business classification, using examples to illustrate the classification

1.2.1.2 Reasons for the changing importance of business classification, e.g. in developed and developing economies

1.2.2 Classify business enterprises between private sector and public sector in a mixed economy

Answer:

Knowledge points:

Solution:

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