Question
Clarify the difference between Private Sector and Public Sector.

Answer

No. Point of Different Private Enterprise Public Enterprise
$1.$ Establishment Private Enterprise is established a person or group of persons. Public Enterprise is established by a state or central government.
$2.$ Ownership A person or a group of persons State or Central Government is are the owners of private the owner of the public enterprise. State or Central Government is the owner of the public enterprise.
$3.$ Main objective Profit is the main objective of private enterprise. Social welfare is the main aim of public enterprise.
$4.$ Exploitation Exploitation of the various classes of people is done to in-crease the profit. As profit is not the aim of public enterprise, the problem of exploitation does not arise.
$5.$ Forms Private enterprise can be in the form of individual ownership, partnership or a join stock company. Public enterprises are mostly in the forms of government company, public corporation or government department.
$6.$ Investment There is limitation of investment in private enterprise. They issue shares and obtain capital from shareholders. As government invests in public enterprise, there is investment on a very large scale.
$7.$ Control To control private enterprise there is partnership, co-operative society or a company act. The formation of public enterprise is done by passing an act in the parliament.
$8.$ Government Interference There is no interference of government in day to day work in private enterprise. Public enterprises have to carry on their transactions according to government rules and regulation.

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