Differentiate between Private and Public Sectors

• What section of the CSEC syllabus is being discussed?

  Principles of Business
• Which objectives were previously covered in the syllabus?

  Objectives 1, 2, 3, and 4
• What is the focus of today's discussion in the syllabus?

  Objective 5 and part of 6
• What types of businesses will be differentiated today?

  Private and public sectors
• What is the level of detail being covered in today's discussion?

  Surface level concepts
• What are the types of businesses found in the private sector?

  • Sole trader
  • Partnership
  • Companies
  • Cooperatives
• What are the types of businesses found in the public sector?

  • Government departments
  • State corporations
  • Nationalized industries
• What is a key distinction between private and public sectors?

  Ownership and control
• Who owns and controls businesses in the private sector?

  Owners and shareholders
• Who owns and controls businesses in the public sector?

  Government and voters
• What is the main motive of businesses in the private sector?

  To make a profit
• What is the main objective of businesses in the public sector?

  To look out for citizens' welfare
• Where does the private sector primarily get its funding?

  Banks, savings, and investors
• Where does the public sector primarily get its funding?

  Taxpayers and government borrowing
• What is an example of a nationalized industry?

  Utility companies like electricity
• What is the difference between public companies and the public sector?

  Public companies are privately owned
• What are public companies also known as?

  Public limited companies
• What are the advantages of government departments?

  • Provide needed services not profitable
  • Employ professional experts
  • Raise funds from major investments
• What are the disadvantages of government departments?

  • Inefficient resource management
  • Bureaucratic red tape
  • Favoritism in job allocation
• How can citizens influence government departments?

  By voting in elections
• What is a common issue with government-run entities?

  They may not be managed efficiently
• What can affect service quality in government departments?

  Favoritism and political influence
• What is a potential problem with hiring in government departments?

  Merit-based hiring may be overlooked