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Distinguish Between the Different Business Objectives of the Public and Private Sector of the Economy

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Distinguish between the different business objectives of the public and private sector of the economy

The public sector is that part of the economy which is owned and controlled by the local government. The public sector needs the private sector to buy goods and services that they cant produce. Much of the public sector is not concerned with making a profit but its aim is to provide public services. Such services include the police, public road, defense, education, and health care. Its main objective in the public sector is to provide a service to the public. Unlike the private sector they do not aim for high profits but their only business objective is to make some profits to cover their costs.

The private sector is that part of the economy which is not run by the government. It is made up of organisations that are controlled by private individuals or private companies. Unlike the public sector, their main objective is to make profits. There are many important reasons why the businesses should make profits example to pay dividends to shareholders. It is important to make profits because businesses can grow and expand by building new premises to operate

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