Lesson 1: Four Sectors (The)
Handout 1

Purposes

The following list details the general purposes of the various sectors within the community.

For-Profit Businesses
Government
Nonprofit Businesses
They are there to make a profit. They can produce goods and services, for example, the postal service or fire service. They provide services where government fails.
I take possession of the goods or services myself. They can regulate what the for-profit world does, for example, telephone service. They may provide private goods, for example, National Geographic.
They allow a simple transaction to take place. I pay the price and I get the product. They have coercive power. They can tax you or make you purchase a license. They are concerned about client satisfaction.
They rely upon customer satisfaction.

They may promise to provide services in order to win elections.

They are not in business to make a profit.
Payment is voluntary. No one is forcing you to purchase it. They may only do what the community demands. They may provide public goods, for example, parks, schools, health care.