Public Sector Enterprise

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Difference between Public Sector and Private Sector Enterprises

Difference between Public Sector and Private Sector Enterprises
Difference between Public Sector and Private Sector Enterprises

Basis

Private sector

Public Sector

Objective

Maximization of profit

Maximize social welfare, Ensure balanced economic development.

Ownership

Individuals

Government

Managed by

Owner and professional managers.

Government

Capital

Raised by owners through loans, private sources and public issues.

Raised from Government funds and sometimes through public issues.

Area of operation

Operates in all areas with adequate return on investment.

Operates in basic and public utility sectors.

Table title: Difference between Public Sector and Private Sector Enterprises

Table description: Showing table of difference between Public Sector and Private Sector Enterprises

Form of Organisation of Public Enterprises

Form of Organisation of Public Enterprises

Form of Organisation of Public Enterprises

Form of Organisation of Public Enterprises

(1) Departmental Undertaking:

  • Form of organisation is primarily used for provision of essential services

  • Such organizations function under the overall control of a ministry of the Government

  • Financed and controlled in the same way as any other government department

(2) Statutory (Or Public) Corporation:

  • Refers to a corporate body created by the Parliament or State Legislature by a special Act.

  • Define its powers, functions and pattern of management

  • is also known as public corporation

  • Wholly capital provided by the government.

    Examples: Life Insurance Corporation of India, State Trading Corporation etc.

(3) Government Company:

  • 51 % or more of the paid up capital is held by the government.

  • Registered under the Companies Act.

  • Fully governed by the provisions of the Act.

  • Owned and managed by government.

Types of Public Enterprises

Types of Public Enterprises

Types of Public Enterprises