Private and Public sectors



Depending on the type of a business, the ownership of the organization can range from just a single person to over thousands of people.
Type of Business activity is another factor to consider the size of the firm, and as size increases the capital investment also will be increased. Thus it is require more persons to own and organize the business.
It is broadly classified into private sector and public sector
Private sector business organisations [firms] are owned and controlled by private individuals.
They are : 1) Sole trader,  2) Partnership, 3) Limited companies (these companies are of two types, they are a) Private limited companies  b)Public limited companies.

Public sector business organisations [firms] are owned and controlled by the government.
Public sector business organisations are: 1) Government trading, 2) Government as shareholder, 3) Public corporations and 4) Municipal enterprises
 There are joint sectors in many countries that are following mixed economic systems, in which both private individuals and government jointly own and control business organisations
Arguments in favour of public sector 1) a government should be better able to raise funds to pay for public expenditure, 2) safety standards might be better enforced, 3) a government would be better able to make it affordable for all people, 4) Public expenditure would help to reduce poverty, 5) this this would help to increase the standards of living of the people
Arguments against public sector, 1) a government might not be able to raise funds always, 2) private sector may be in a better position to do this, 3) availability of funds and public expenditure would depend on fiscal stance of government, 4) a government might have to raise taxation to bring in the necessary revenue to pay for the expenditure, 5) They have to be considered in terms of opportunity cost to consider the usefulness.                             
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