Question

Distinguish Between.

Private Sector Organisation and Public Sector Organisation.

Answer 1

Points	Private Sector Organisation	Public Sector Organisation
1. Meaning	Private enterprises are owned managed, controlled, and financed by individuals or groups of individuals. Thus, ownership and management are with private organisations.	Public enterprises are owned, managed, and controlled by the state on behalf of the people.
2. Management	It is managed by industrialists through the board of directors and other specialized executives.	It is managed by government officials or the board of directors.
3. Size of Entity	They are usually of small or medium size depending on the volume of operation.	They are usually large in sized and they operate on a large scale.
4. Capital provider	Capital is contributed by the owner from their own resources and borrowings from financial institutions.	The capital of public sector organisation is contributed by the government.
5. Decision Making	Decision making is quick as very few officials are involved in the decision-making process.	Decision making is delayed due to bureaucratic hurdles.
6. Business area	It generally operates in industrial and commercial areas only.	It operates in utility services areas like- railways, posts, etc. and also in industrial and commercial areas.
7. Main Motive	The main motive of the private sector organisations is to earn a profit.	The main motive of the public sector organisations is to provide services to society.
8. Flexibility	They are more flexible in nature as their policies can be modified as and when the need arises.	There is no flexibility in their operations as any change or modification requires the approval of the Government.