Question

Distinguish between the public and private sector.

Answer 1

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.

On the contrary, public sectorcomprises 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.

Answer 2

Distinguishing factors between the public and private sector are as follows:

• Public sector and Private sector are contradictory to each other.
• When an individual control and manage a business by his own, this builds a private sector. But when government manages many business enterprises, this is known as public sector.
• In case of public sectors, government controls a part of overall economy of country. In case of private sectors,  an individual controls a part of economy.
• The aims of public and private sectors are to promote people's welfare and to earn maximum of profit.