9 Differentiate between private & public sectors businesses. [6]

[Sir Afzal Shad]

Q9 Differentiate between private & public sectors businesses. [6]

Possible Structure:
[KN]
[AN]
[AN+]

[KN]
[AN]
[AN+]

[Syed Mustafa Ali]

[KN] Private businesses are owned and operated by individuals, groups of individuals, or corporations. While Public businesses, also known as government-owned or state-owned enterprises, are owned and operated by the government or a public authority.
[AN] Private businesses aim to generate profits for their owners or shareholders.
[AN+] Public businesses typically serve public interests rather than seeking profits.
[KN] Private businesses make decisions based on market forces, competition, and the pursuit of profit while Public businesses are subject to government regulations, bureaucracy, and political considerations.
[AN] In private businesses decision-making is often more agile and driven by market demand.
[AN+] In public businesses they typically serve public interests rather than seeking profits.

[khuram khan]

[KN] Private businesses are those that are owned by private individuals while public businesses are those that are owned and controlled by the business
{AN} The main focus of a private business would be to maximize their profits by making as many sales as possible whereas public businesses since they are government owned they usually work for the welfare of the economy
{AN+} Thus the prices of the goods of the private sector would be relatively higher than those of the public businesses

{KN} Private businesses start producing the products that are higher in demand (demerit goods) whereas the public businesses seek to produce products that are advantageous for the economy rather than what is demanded
{AN} In private businesses the customers are convenient and so they decide what is to be made which increases the chance of market failure in the economy as well
{AN+} Hence the public sector utilizes all the negative externalities through the production of merit goods as well as making more people aware of the consequences of the misallocation of resources

[Talha Asim]

(Kn)private firms are owned and controlled by the people whereas public firms are owned and controlled by the government (an)in a private sector consumers are sovereign amd decide what to produce but in public sector the choice of the government is followed(an+) in public sector this will increase sales as the exact demand is met but in public sector it will be hard to achieve this goal
(Kn) main aim of public firms if betterment of society whereas main aim of private sector are profits (an) the private individuals work to make a profit since that is their number 1 goal. The public firms work and produce goods that are either public or merit goods such as defence of fruits (an+) the private sector uses cost efficient methods for profit making and dont think about the the community whereas all the decisions the public sector makes if for the welfare of the people

[Syed Raza]

[KN] Private firms are owned and controlled by the businesses that are privately registered whereas public firms are owned and controlled by the government.
[AN] in Private sectors goods are produced according to the consumers preferences whereas in public sector the government decides everything.
[AN+] in private sector they make higher profits but in public sector business there are less chances of revenue.

[KN] Private businesses start producing the products that are higher in demand (demerit goods) whereas the public businesses seek to produce products that are advantageous for the economy rather than what is demanded
{AN} In private businesses the customers are convenient and so they decide what is to be made which increases the chance of market failure in the economy as well
{AN+} Hence the public sector utilizes all the negative externalities through the production of merit goods as well as making more people aware of the consequences of the misallocation of resources

[Maham fatima]

[KN] Difference in ownership, private sector businesses are owned and controlled by private individuals(entrepreneurs) whereas public sector businesses are owned and controlled by the government
[AN] these private individuals mainly aim for profit maximization however, state owned businesses focus on other objectives such as reducing unemployment
[AN] therefore private sector businesses' resource allocation decisions are efficient in reducing cost whereas public sector businesses might fail to reduce costs and this might result in wastage of resources eg extra labour may be employed and paid salaries

[KN] The products they produce, A private sector business is likely to produce goods and services that are highly demanded whereas a public sector business produce products which are beneficial and essential for the consumers ( merit goods,public goods)
[AN] therefore private sector businesses allow customers to be sovereign and public sector businesses help to improve standards of living of consumers (usually disadvantaged groups)
[AN] as a result customer relations with private sector businesses improve

[Hadia Zia]

[KN]The private sector business is owned, managed and controlled by individuals whereas public sector comprises of various businesses owned and controlled by government.
[AN] Moreover, private sector businesses main objective is profit maximization and building a good brand image however the other sector focuses more on serving the general population in the best possible way.
[AN+] Thus their different aims draw a straight line between the result produced too as private sectors will charge high prices in order to earn more and public sector may keep low and steady prices to make sure the factor of affordability stays constant.

[KN] Stability of job [less in private sector and more in public sector businesses]
[AN] Jobs within the private sector are not very secure as any worker who is felt useless is simply removed from the plate however jobs in public sector are said to be secure because government also aims to have unemployment at its lowest rate.
[AN+] This is because private sectors are not willing to increase costs but rather to reduce it and the government thinks of welfare of people so it even takes on extra people for the jobs .

[Kumail Alvi]

[KN] Private sector is owned by private individuals while the public sector is owned and controlled by the government.
[AN] The main focus of a private sector business would be to maximize their profits by making as many sales as possible whereas public businesses since they are government owned they usually work for the welfare of the economy
[AN+]Thus the prices of the goods of the private sector would be relatively higher than those of the public businesses


[KN]Private sector businesses tend to create goods and services that cater to high consumer demand, while public sector enterprises typically provide products that are valuable and necessary, such as merit goods and public goods.
[AN]Consequently, private sector businesses empower customers by allowing them to make choices, while public sector businesses contribute to enhancing the quality of life for consumers, particularly those from disadvantaged backgrounds.
[AN+]This dynamic often leads to enhanced customer relations with private-sector businesses.

[Ayesha imran]

[kn] private sector businesses are privately owned by individuals whereas public sector businesses are owned by the government
[an] main aim of pvt sector is to generate profits for thier own sake however public sector always prioritizes social welfare
[an+] therefore private buisinesses do thier best to minimize costs whereas public sector may even waste resources to benefit the people for eg they may employ people unnecessarily for thier benefit
[kn] in private sector businesses decision making is done according to what people demand whereas decisions in the public setor decisions are based on the betterment of people
[an] private sector businesses make faster decisions as compared to public sector
[an+] private sector is more responsive and adaptable to changes in mkt demand whereas public sector is less responsive

[Ahmed Zunair]

[KN] Private sector is owned by individuals and public sector is owned and controlled by the government.
[AN] The main aim of private sector businesses is to make profit. Whereas the main aim for public sector businesses is to provide services to the general public.
[AN+]Thus the prices of goods and services in private sector would be higher then that goods and services of the public sector

[KN] Private sector produces goods and services which have high demand and public sector provides goods and services that are beneficial for the economy.
[AN] which means private sectors main is to make profits.
[AN+] Thus the sales of goods and services in private sector is higher then that of the public sector.

[Sodais sajid]

KN: Ownership
AN: Private sector businesses are owned and operated by private individuals or entities
AN+: They are typically driven by profit motives and are not directly controlled by the government
KN: Financing
AN: They raise capital through sources like loans, private investments, and equity offerings
AN+: Their financial information is generally not disclosed to the public

[Salman Khalid]

[KN] Private sector produces goods and services which have high demand and public sector provides goods and services that are beneficial for the economy.
[AN] which means private sectors main is to make profits.
[AN+] Thus the sales of goods and services in private sector is higher then that of the public sector.

[KN] Private firms are owned and controlled by the businesses that are privately registered whereas public firms are owned and controlled by the government.
[AN] in Private sectors goods are produced according to the consumers preferences whereas in public sector the government decides everything.
[AN+] in private sector they make higher profits but in public sector business there are less chances of revenue.

[Ibrahim Aamir]

[KN] private sector businesses are those who are owned by the private induvial and public sector business are those firms owned by government
[AN] private sector business are solely created for profit purposes and public sector business are those who work for the public
[AN+] thus private sectors products are expensive and public sectors product is cheaper

[KN] private sector business are fully effected by the demand in country however in public sector business are not effected
[AN] by the production of anything of produced without considered what is good of the public in private sector however public sector business only produced which is good for the public
[AN+] thus in private sector the customer are those who totally control the market

[Humzah Zafar]

[KN]Private sector businesses are owned and controlled by private individuals and public sector businesses are state owned
[AN]A private firm may aim for profit maximization whereas public sector firm may aim to provide services to the general public
[AN+]This may lead to higher prices in private firms as compared to public sector firms

[KN]Private firms produce the products that are in demand whereas public firms produce products that are beneficial for the public
[AN]Thus consumers may be more satisfied by private firms more than public firms
[AN+]This may lead better customer loyalty for a private firm

[Sarah Shahzad]

(Kn) the private sector is owned by private individuals and the public sector is owned by the government (an) private individuals, get to make decisions on what to produce how to produce and prices with very little government intervention, however, public sector has to abide by government regulations.

(Kn) the competition in private sector, is higher than public sector (an) this can be because the private sector is open to competition and Aims to increase market share however, the public sector aims to provide Essentials and needs to customers.