1.2.

3 Review Questions
1. What are social enterprises?

an organisation that applies commercial strategies to achieve maximum social

benefits and and wellbeing

2. Distinguish between cooperatives, microfinance providers and public-

private partnerships.

Cooperatives are member-based organisation that aims to benefit the

customers services. Microfinance providers provide small loans to people in
desperate need. Public-private partnerships aim to earn financial profits, and
therefore operates at maximum efficiency and productivity

3. Explain two potential advantages and two potential disadvantages to a

country when its government uses public-private partnerships to pay for
and manage health clinics.

1. The cost may be better regulated because the aim of government-owned

businesses is to provide services at a affordable rate to society

2. The operations is a lot more efficient than government-owned because the

ultimate goal of private organisations is to earn profit, therefore maximum
productivity

1. The cost of health clinics may cost more when it's managed by public-
private partnerships compared to public organisations. This is because
public organisations purely aim at providing affordable and essential
service, whereas public-private partnerships are managed by private
sectors, whom aim to gain maximum profit.

2. The major projects of the public-private partnerships may be managed

poorly due to lack of experience. As a result, the services may be postponed,
and may miss out on providing healthcare services to people in need.

4. Distinguish between the aims of businesses in the public sector and the
private sector

The aim of businesses in the public sector is to offer job opportunities for
workers and provide services to society that are viewed as necessities. The aim

1.2.3 Review Questions 1

 of businesses in the private sector is primarily to earn financial profits and grow
as efficiently as possible.

5. Examine how housing provided by a housing cooperative might differ

from that provided by a private sector firm.

Although they both provide the same type of service, the customer experience
and prices would differ largely, this is mainly due to the difference in their
objectives. Cooperatives are member-based businesses that aim to benefit
customers, and are mostly revolved around the customers' experience. Private
sector firms aim to earn as much profit as possible, therefore they will work
efficiently to benefit the business. Therefore, housing cooperatives might
provide their services at a cheaper rate compared to private sector firms.

1.2.3 Review Questions 2