Fig. 1 shows the ownership route for Riverside Recycling Ltd. The company collects household goods and recycling from customers in a coastal town. Any surpl...
Question 1 Report
Fig. 1 shows the ownership route for Riverside Recycling Ltd. The company collects household goods and recycling from customers in a coastal town. Any surplus is used to improve the local service rather than paid to private shareholders.
(a) Identify the sector in which Riverside Recycling Ltd operates. [1]
(b) State two features of a public sector business. [2]
(c) Explain one reason why the council may provide this service instead of leaving it only to private companies. [3]
Answer Details
(a) Riverside Recycling Ltd operates in the public sector [1]. The diagram shows that Harbour Town Council owns it, and its surplus is used to improve the service rather than paid to private shareholders.
(b) Two features of a public sector business are that it is owned by government or a local authority [1] and that it provides services for the public [1]. It may also be funded by tax or other public money and aim to meet public needs rather than maximise profit.
(c) Recycling is an essential local service [1]. A private company may avoid remote or unprofitable collection areas [1], whereas council ownership can ensure that all residents receive a regular collection service and support environmental aims [1]. This explains why a council may provide the service even when profit is not the main objective.
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