Question

briefly describe formal sector

Answer 1

Very briefly: the formal sector, or the formal part of a country’s economy, is composed of those firms and workers who are engaged in legal[ized] economic activities. Furthermore, if it is a FORMAL firm, company, or corporation, it is legally incorporated, keeping their accounting books [sort of] in order, and is paying their taxes. If an employee is to be a FORMAL employee, s/he is legally employed by one of the above mentioned FORMAL firms, who keeps proper records of their employment, pays them a salary - usually via a check or a deposit into a FORMAL bank account, pays social security/social insurance or pension obligations to a government insurance institution or to a FORMAL private pension manager, and provides benefits.
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