Question

Difference between private Enterprise and public Enterprise

Answer 1

A private enterprise refers to a commercial or business organization which is owned or administered by any private individual or group.On the other hand,public enterprises are those organizations which are owned and administered and operated by the state or government.

Explanation:

Some differences between Private and Public Enterprise:-

• The primary economic objective of private enterprises is to maximize profit whereas the main goal of public enterprises is social and public welfare and development.
• As by the definition,private businesses or enterprises are owned and operated by private/independent individuals or groups but public enterprises are owned and operated by the state or the central government in most countries.
• The management or administration of private enterprises usually consist of board of directors,shareholders etc.Public enterprises are completely administered and controlled by government or common public.
• The sources of capital or investment for the private enterprises are usually private shareholders,independent investment and business agencies.In contrast,public enterprises are funded by financially operated by the government or through public tax money.
• Private enterprises are operational in almost all sectors of the economy except national security.Public enterprises are mostly functional in public utility and infrastructural sectors.