25 Explain the difference between a public sector business and a private sector business.

[Sir Afzal Shad]

25 Explain the difference between a public sector business and a private sector business.[3]
Hint: Ownership > Public is owned by the government, Private by individuals.
Hint: Main Objective > Public is usually service-based, Private is usually profit-based.

Sample Answer [3/3]
[KN] Private sector business are owned by people whereas public sector business are owned by the government.
[APP] For example schools & institutions owned by Government are providing the basic education against the private sector.
[AN] This would give access to skills & education for masses, where they can after getting these skills can get a good job. Since, skilled labor earns more, their income levels will rise, leading to more spending on luxuries, overall increasing the GDP of the country.

[EmmanWaseem]

It is the ownership between the two businesses
In private sector ,it is owned by the public meaning individuals
Whereas in public sector it is owned by the government

[Aarib Saad]

(KN)The goal of a Private Sector business is profit maximization, whereas the goal of a public sector business is public welfare.
(APP)For instance, a government owned hospital's goal is to provide basic healthcare for the benefit of people, whereas the primary goal of a private hospital will be to maximize the patients it has for higher profitability.
(AN)This in turn will mean that a private sector businesses will be comparatively more efficient in resource allocation than public businesses, this will lead to cost saving, thus higher opportunity for expansion and growth, due to higher capital.

[Abdullah Altaf]

[KN] Private sector business are owned by people whereas public sector business are owned by the government.
[APP] An example of a private sector business is a chain of restaurants, which aims to make a profit for its owners. In contrast, a public sector business, such as a public library, is focused on providing a service to the community regardless of profit.
[AN] This allows poor to study as well which reduces inequality in the society.

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Examiner Comments:
[KN] Private sector business are owned by people whereas public sector business are owned by the government.
[APP] For example schools & institutions owned by Government are providing the basic education against the private sector.
[AN] This would give access to skills & education for masses, where they can after getting these skills can get a good job. Since, skilled labor earns more, their income levels will rise, leading to more spending on luxuries, overall increasing the GDP of the country.

[Shaliza khawaja]

Public sectors are owned and controlled by the government wheras private sector business are owned and controlled by indiviuals for example a railway station owned by government is part of public sector whereas a colthing store owned by an indiviual is a private sector business .the main difference is there aim as public sector business aims to provide service to general publiic private sector business aim to maximize profit, this also affects how the operate as private sector business would set higher prices to get more profit whereas public sector business set lower prices to make products available to the society

[Muaz Aamir]

KN: The main difference between a public sector business and a private sector business is who owns and controls them.

AP: For example, public sector businesses are owned by the government, while private sector businesses are owned by individuals or groups.

AN: This means public sector businesses aim to provide essential services, even if they are not always profitable. Private sector businesses, on the other hand, usually focus on making profit for their owners. Because of this, public sector businesses may focus more on fairness and access, while private sector businesses aim for efficiency and competitiveness.

[shamaim shakeel]

KN: The main difference is ownership public sector businesses are owned by the government, while private sector businesses are owned by individuals or shareholders.
APP: For example, the BBC is public sector, while Apple is private sector.
AN (bonus 1): Public sector firms aim to provide services for society, like healthcare or education.
AN (bonus 2): Private sector firms mainly aim to make profit and grow.
AN (bonus 3): Public businesses are funded by taxes, while private ones rely on sales and investment.

[Abdur Rehman khan]

[KN] A public sector business is owned and controlled by the government, while a private sector business is owned by individuals or shareholders.
[APP] For example, a public hospital is run by the government to provide affordable healthcare, whereas a private hospital is run by owners with an aim of profit.
[AN] This means the public sector focuses on providing services ensures access for all people whereas the private sector prioritises profit leading to innovation, efficiency and growth .

[Arham Qadri]

[KN] Public sector is majorly owned and controlled by government while privet sector is majorly owned and controlled by people.
[APP] A government school is mainly to provide education at low cost while private school are usually to generate profit.
[AN] public sector focuses on providing services ensures access for all people whereas the private sector prioritizes profit leading to innovation, efficiency and growth.

[hassanalizafar]

[KN] A public sector business is owned by the government and mainly aims to provide services in the masses while a private sector business is owned by individuals and mainly aims to make profit.
[APP] For instance, Pakistan Railways (public sector) is run by the government to keep transport affordable while McDonalds (private sector) is owned by shareholders and focuses on generating revenue.
[AN]This allows public sector businesses to keep services accessible which means more people can afford to use them improving equality in society which raises overall welfare creating public trust in government services hence ensuring social stability and support for the economy.

[areeshasaber]

[kn] A public sector business is owned and controlled by government whereas a private sector business is owned and controlled by private companies
[app] A public sector business could be a government hospital and a private sector business could be a clothing store.
[an+] public sector businesses are more focused on providing affordable services to all citizens, this will lead to greater accessibility for low-income groups, thus improving equality in society and raising overall living standards.

[Mamoona Hussain]

KN: A private sector business's main objective is profit maximisation whereas a public sector seeks to provide services to the masses.
APP: For instance, a private sector hospital like Shifa offers services to earn profits whereas public sector hospitals like Benazir offer services to provide basic healthcare to the people at a cheaper price.
AN: Due to this, the private sector businesses offer people more elite/customised services with added value so they can charge higher prices, due to which they can earn more profits, increasing their chances of growth, this ensuring long term survival. However, this can be difficult for the public sector businesses as they are not profit driven, this do not offer luxury, and this allows inefficiency.

[Abdul Hadi]

KN: the ownership of a public sector business is under the government whereas the ownership of the private limited companies lies between the share holders/investors.
APP: For example, the NHS in the UK is a public sector organisation, while Tesco is a private sector retailer.
AN: The public sector business focuses on providing services and products to people while achieving limited profits, the private organisation focuses on gaining profits and encouraging growth and expansion, The difference mainly relies on funding as the public sector relies of taxes etc while private organization relies on investments and sales

[Naveen fatima]

[KN]An objective of a public sector business is to provide essential services to the public whereas private sector businesses main objective is earning profit and selling goods and services
[APP]For example, the government may run hospitals, schools or public transport whereas a private company like apple sells goods to earn profit.
[AN]This ensures everyone, even those who cannot afford high prices, can access important services that improve living standards.

[Areeba Arshad]

[KN] A public sector business is owned and controlled by the government, whereas a private sector business is owned by individuals or shareholders.
[APP] For example, the NHS in the UK is a public sector business, while Tesco is a private sector business.
[AN] The difference is that public sector firms usually aim to provide essential services such as healthcare or education, while private sector firms mainly focus on making profit, which influences their pricing, efficiency, and decision-making.