Distinguish between economic sectors in terms of ownership. Explain with examples?
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Answers
Gone are the days, when only the Public Sector was prevalent in the economy. At present, many countries have adopted the policy of Privatisation, through which Private Sector is also gaining importance. For the progress and development of any country, both the sectors must go hand in hand as only one sector cannot lead the country in the path of success. The private sector comprises of business which is owned, managed and controlled by individuals.
PUBLIC SECTOR :
The section of a nation's economy, which is under the control of government, whether it is central, state or local, is known as the Public Sector.
Basic objective: To serve the citizens of the country.
Raises money from: Public Revenue like tax, duty, penalty etc.
Areas: Police, Army, Mining, Health, Manufacturing, Electricity, Education, Transport, Telecommunication, Agriculture, Banking, Insurance, etc.
Benefits of working: Job security, Retirement benefits, Allowances, Perquisites etc.
Basis of Promotion: Seniority
Job Stability: Yes
PRIVATE SECTOR :
The section of a nation's economy, which owned and controlled by private individuals or companies is known as Private Sector.
Basic objective : earning profit
Difference Between Public Sector and Private Sector
May 20, 2015 By Surbhi S 14 Comments
public vs private sectorGone are the days, when only the Public Sector was prevalent in the economy. At present, many countries have adopted the policy of Privatisation, through which Private Sector is also gaining importance. For the progress and development of any country, both the sectors must go hand in hand as only one sector cannot lead the country in the path of success. The private sector comprises of business which is owned, managed and controlled by individuals.
On the contrary, public sector comprises of various business enterprises owned and managed by Government. Such organizations are either fully or partly owned by the center or state and come under the separate ministry. Some of the public sector organizations are set up by a special act of Parliament.
A cut-throat competition between both the sectors, to prove itself better over the other sector. So, the article attempts to outline the differences between public sector and the private sector in tabular form.
Content: Public Sector Vs Private Sector
Comparison Chart
Definition
Key Differences
Conclusion
Comparison Chart
BASIS FOR COMPARISON PUBLIC SECTOR PRIVATE SECTOR
Meaning The section of a nation's economy, which is under the control of government, whether it is central, state or local, is known as the Public Sector. The section of a nation's economy, which owned and controlled by private individuals or companies is known as Private Sector.
Basic objective : Earning Profit
Raises money from: Issuing shares and debentures or by taking loan
Areas : Finance, Information Technology, Mining, Transport, Education, Telecommunication, Manufacturing, Banking, Construction, Pharmaceuticals etc
Benefits of working : Good salary package, Competitive environment, Incentives etc
Basis of Promotion : Merit
Job stability : no