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Public Sector and Private sector, Advantages, Features, Limited Financial…
Public Sector and Private sector
Public sector
Define: Businesses Owned/controlled by a government for public interest
Example: Salmaniya hospital, Bapco, Alba, Public schools.
Private Sector
Definition: Private sector businesses are businesses that are privately owned and focus on making as much profit as they can.
Advantages; The owner will profit more money, The owner has more freedom of choice on the business, Greater chance for workers to get a promotion
Examples: Ahli united bank, Car manufacturers and private schools
Registration with Companies House.
Administrative burden.
Complex Accounts.
Shared Ownership.
Features
Limited Government Intervention
Profit Motive
Ownership
Advantages
Disadvantages
Political Interference:
Lack of Market Competition and Innovation:
Bureaucracy and Slow Decision-Making:
Public Accountability: Public sector businesses operate with efficiency
Social Welfare Focus: Public sector businesses prioritize the needs of the community
Long-Term Stability: Public sector businesses benefit from government support and funding
Features
Government Controlled
Public ownership
Non-Profit
Limited Financial Flexibility
Disadvantages
Complex Accounts.