Question

On what basis is the industrial sector classified into public and private sectors? A. Employment conditions B. The nature of economic activity C. Ownership of enterprises D. Number of workers employed in the enterprise

Answer 1

Answer:

The answer is C.Ownership of enterprises

Answer 2

Enterprises are classified into Private or Public sector based on their ownership.

Explanation:

1. When an enterprise is owned and run by individuals or group of individuals with the aim of making profit, it is called a private sector enterprise.
2. When an enterprise is owned and run by the government, it is called a Public sector enterprise. These enterprises enable the government to have control over the economy and they are run for the benefit of the people.
3. Sometimes an enterprise can be owned by both the government and the individuals upon an agreement of partnership. These enterprises are joint enterprises.