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Question
Distinguish Between.
Private Sector Organisation and Public Sector Organisation.
Distinguish Between
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Solution
| 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. |
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| Group ‘A’ | Group ‘B’ | ||
| A) | BHEL | 1) | Special Legislature |
| B) | Statutory Corporation | 2) | 49% paid up capital by govt. |
| C) | Departmental Organisation | 3) | Service Motive |
| D) | Private Sector | 4) | Railway |
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| 6) | 51% paid up capital by govt. | ||
Match the pairs.
| Group ‘A’ | Group ‘B’ | ||
| A) | BHEL | 1) | Special Legislature |
| B) | Statutory Corporation | 2) | 49% paid up capital by govt. |
| C) | Departmental Organisation | 3) | Service Motive |
| D) | Private Sector | 4) | Railway |
| E) | Public Sector | 5) | Profit Motive |
| 6) | 51% paid up capital by govt. | ||
Match the pairs.
| Group ‘A’ | Group ‘B’ | ||
| A) | BHEL | 1) | Special Legislature |
| B) | Statutory Corporation | 2) | 49% paid up capital by govt. |
| C) | Departmental Organisation | 3) | Service Motive |
| D) | Private Sector | 4) | Railway |
| E) | Public Sector | 5) | Profit Motive |
| 6) | 51% paid up capital by govt. | ||
Match the pairs.
| Group ‘A’ | Group ‘B’ | ||
| A) | BHEL | 1) | Special Legislature |
| B) | Statutory Corporation | 2) | 49% paid up capital by govt. |
| C) | Departmental Organisation | 3) | Service Motive |
| D) | Private Sector | 4) | Railway |
| E) | Public Sector | 5) | Profit Motive |
| 6) | 51% paid up capital by govt. | ||
Match the pairs.
| Group 'A' | Group 'B' | ||
| A) | BHEL | 1) | Special Legislature |
| B) | Statutory Corporation | 2) | 49% paid-up capital by govt |
| C) | Departmental Organisation | 3) | Service Motive |
| D) | Private Sector | 4) | Railway |
| E | Public Sector | 5) | Profit Motive |
| 6) | 51% paid-up capital by govt. | ||
Match the pairs.
| Group 'A' | Group 'B' | ||
| A) | BHEL | 1) | Special Legislature |
| B) | Statutory Corporation | 2) | 49% paid up capital by govt. |
| C) | Department Organisation | 3) | Service Motive |
| D) | Private Sector | 4) | Railway |
| E) | Public Sector | 5) | Profit Motive |
| 6) | 51% paid up capital by govt. |
Match the pairs:
| Group ‘A’ | Group ‘B’ |
| A) BHEL | 1) Special Legislature |
| B) Statutory Corporation | 2) 49% paid up capital by government |
| C) Departmental Organisation | 3) Service Motive |
| D) Private Sector | 4) Railway |
| E) Public Sector | 5) Profit Motive |
| 6) 51% paid up capital by government |
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Which of the following statements is true for the private sector?
Who described public enterprise as state ownership and operation in various sectors?
