Question

What is the difference between formal and informal sectors?

Answer 1

Explanation:

The formal sector consists of the businesses, enterprises and economic activities that are monitored, protected and taxed by the government, whereas the informal sector is comprised of the workers and enterprises that are not under government regulation.

Answer 2

Explanation:

Formal sector are those sector which is established by organisations, institutions, etc.

Informal sector are those sector which is established by itself.