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Question : 6
Total: 6
Explain any five differences between public and private sectors.
Solution:
| S. No. | Private sector | Public sector |
|---|---|---|
| (i) | Ownership of assets and delivery of services is in the hands of the private individuals or companies. | The government owns most of the assets and provides all services. |
| (ii) | Their main motive is to earn profit. | Their main motive is public welfare rather than to earn profit. |
| (iii) | The decision regarding production and distribution are taken by managers or owners of the company. | The decision regarding productionand distribution are take by thegovernment. |
| (iv) | Due to the motive of earning profit it does not invest funds to construct infrastructures for public utility/facility. | Due to motives of public welfare, it invests funds to construct infrastructures for public utility/facility, like construction of roads, bridges, etc. |
| (v) | Examples: Tata Iron and Steel Company Ltd. (TISCO), Reliance Industries Ltd., etc. | Examples: Railways, post office, police station, etc. |
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