question_answer

What is the difference between Public and Private sector?

Answer:

Ans.     Differences between public and private sectors are summarised in the table given below:

Basis	Public Sector	Private Sector
Ownership	These are owned by the government central or state.	These are owned by individuals or group of individuals.
Aim	It aims at social welfare.	It aims at profit maximisation.
Efficiency	It is likely to be less efficient due to lack of autonomy and too much interference.	It is likely to be more efficient due to quick decision making.
Management Control	It is subject to control from the government.	It is controlled only by business laws but not directly by the government.
Accountability	These are accountable to the government.	These are accountable to the owners.
Example	Railways, BHEL, LIC Ltd, SAIL, GAIL	Reliance Industries Limited, Partnership firms, HUF, Cooperatives etc.