Question

Give a comparison between public sector, private sector and joint sector enterprises.

Answer 1

Basis of comparison	Private sector enterprises	Public sector enterprises	Joint sector enterprises
Ownership	Private sector enterprises are owned by private individuals or groups.	Public sector enterprises are owned and controlled by the government.	Joint sector enterprises are owned jointly by the government and private individuals.
Management	These enterprises are managed by private owners or professional managers.	These enterprises are managed by government-appointed officials.	These enterprises are managed jointly by nominees of the government and private owners.
Primary objective	The primary objective of private sector enterprises is profit maximization.	The primary objective of public sector enterprises is public welfare and service motive.	The primary objective of joint sector enterprises is to achieve both profit and social objectives.
Source of capital	In private sector enterprises, capital is arranged by private owners.	In public sector enterprises, capital is funded by the government.	In joint sector enterprises, capital is pooled from both the government and private owners.
Risk	The risk is high and borne entirely by owners.	The risk is low and mostly borne by the government.	The risk is shared between government and owners.
Accountability	Private sector enterprises are accountable to their owners.	Public sector enterprises are accountable to the public through the government and parliament.	Joint sector enterprises are accountable to both private owners and the public.
Examples	Examples include Reliance Industries, Tata Steel and HUL.	Examples include Indian Railways, RBI and DTC.	Examples include Cochin Refineries and Gujarat State Fertiliser Company.