What is the Difference between Private and Public Sector
Every economy is has two portions, public sector and private sector. Both do businesses and both generate revenue. No economy can grow well and in balance if it lacks either of them. An economy all owned by individuals will lack the well-fare of the society whiel an economy all owned by the government will never generate the desired profits. So there remains balance when both sectors work side by side.
Public Sector
In public sector, all the companies are run and owned by govt. itself. They are not established to generate heavy revenues. This govt. owned sector works to provide the general public the necessities of life like electricity in one of the best example; it is almost always and everywhere public sector. Public sector businesses are huge and they are run by investing huge amounts. They can offer their shares in the market in order to collect capital for re-investment.
Private Sector
In private sector, all the corporate are privately owned. They are owned by individuals or group of individuals. They can be registered or non-registered. The registered corporate issue their shares to the general public like public sector organizations. The private sector businesses don’t run their businesses for the well-fare but they collect profit from their services products from the consuming public. Not every person in the society consumes their products or knows them.
Public vs Private Sector
The first difference is the type of business both sectors have. Public sectors have business without competition while private sector is well known for the cut throat competition. The public sector enjoys monopoly because they work even when they face loss but private sector has to be profitable because losses don’t let the corporate run for long. Private sector organizations has sole agenda of profit earning which the govt. owned sector does not have. The public sector follows one common set of commands though their inter-organization values differ. Private sector follows the rules set by a specific ruling body that controls and checks the businesses.
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