Explain the concept of private sector and also discuss their merits and demerits
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HIII.....
HERE IS YOUR ANSWER:------
MERITS:-
☆ MEMBERS ARE WELL KNOWN TO EACH OTHER; HOWEVER THE CONTROL IS IN THE HANDS OF OWNERS CAPITAL.
☆ THE NUMBER OF DIRECTORS IN A PRIVATE COMPANY IS TWO.
DEMERITS:-
☆ IN STOCK CHANGE SHATES CANNOT BE QUOTED.
HERE IS YOUR ANSWER:------
MERITS:-
☆ MEMBERS ARE WELL KNOWN TO EACH OTHER; HOWEVER THE CONTROL IS IN THE HANDS OF OWNERS CAPITAL.
☆ THE NUMBER OF DIRECTORS IN A PRIVATE COMPANY IS TWO.
DEMERITS:-
☆ IN STOCK CHANGE SHATES CANNOT BE QUOTED.
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HolA
The merits are that the private organisation is independent of the state and therefore a net contributor to state income and employment. The organisation survives only on its own abilities and therefore will be energised and motivated to ensure its survival. It will push forward in terms of improving its efficiency levels and its ability to meet the changing needs of a dynamic market. The state receives tax from the organisation and from all the organisations which connect to it. The state also receives income from the people the organisation employs, via direct and indirect taxation. The state is not responsible for the organisation but benefits from its activities.
The demerit is that the organisation can move to another country taking its tax revenue with it. The organisation has no loyalty to the state and therefore will try its hardest to reduce its tax burden. The organisation’s activities need to be monitored by the state (e.g. health and safety, employment law), and this is a cost to the state. The organisation can fail thereby throwing many people (voters) out of work, this then becomes a burden the state must take up.
The private organisation is essential to a country’s prosperity though no government can entirely trust any private organisation.
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The merits are that the private organisation is independent of the state and therefore a net contributor to state income and employment. The organisation survives only on its own abilities and therefore will be energised and motivated to ensure its survival. It will push forward in terms of improving its efficiency levels and its ability to meet the changing needs of a dynamic market. The state receives tax from the organisation and from all the organisations which connect to it. The state also receives income from the people the organisation employs, via direct and indirect taxation. The state is not responsible for the organisation but benefits from its activities.
The demerit is that the organisation can move to another country taking its tax revenue with it. The organisation has no loyalty to the state and therefore will try its hardest to reduce its tax burden. The organisation’s activities need to be monitored by the state (e.g. health and safety, employment law), and this is a cost to the state. The organisation can fail thereby throwing many people (voters) out of work, this then becomes a burden the state must take up.
The private organisation is essential to a country’s prosperity though no government can entirely trust any private organisation.
Thanks for question
Hope it helps you
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