(ii) Public sector and joint sector industry
Answers
Answer:
The main difference between Public Sector and Joint Sector is on ownership. A public sector enterprise or industry is completely owned and controlled by the government while the Joint Sector enterprise, as the name, implies shares the ownership between government and private entrepreneurs.
Public sector and joint sector industry
Explanation:
Public sector
Ownership: The public sector is wholly owned by the government.
Sectors of Service:- Some Public Sector Enterprises are Defense Services, Railways, Atomic Energy.
Capital investment: The public sector raises funds through taxes, duties and internal state level fund transfers.
Fundamental Purpose:- Public sector is established for the benefit and social welfare of the people.
Accountability: The government is solely responsible for the rise and fall of the enterprise.
Joint sector
Ownership:- Joint sector is that segment which is partly owned by government and private institutions.
Service Sectors:- Banking Services, Airlines, Petroleum Products.
Capital investment :- Partially done by government and private company.
Fundamental Purpose:- Joint sector is also established for the purposes of social welfare and profit making.
Accountability :- The government and private company will take responsibility for the rise and fall of the enterprise.