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The Business Environment

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The Business Environment
GUILLAUME, ORIS
Queena Swanson
BUS 100
2/4/2013

The public sector and private sector are terms used to describe the two main types of business industries within an economy. The largest distinction between them is that the public sector is owned and operated by the government, while the private sector is dominated by private business owners. The easiest way to tell the different between the two organizations is to look at who is in charge. In a public sector, employees, supervisors, and managers all work for the government. The company or organization is not owned by a corporation or a private owner, but the government of the region. Private sector organizations are operated by private citizens and many answer to a board of directors, owning partnership, or single owner. Employees in private sectors jobs are employed by the organization.
The organizations are also divided by their aims. Public sector groups have a duty to serve the public, and not usually in direct competition with other groups to meet the same demand. They are not profit oriented, and tend to provide services rather than goods. Private companies, usually aim for profit and try to outperform competitive business to meet the same demands. While private companies may have some humanitarian goals, their bottom line is typically the profitability of the business, not necessarily serving the public. There are many private businesses that may be considered part of the private sector. Corporations, retail stores, restaurants, and gas stations are all common types of private business. Non-profit organizations, such as charitable foundations or private schools are usually considered part of the private sector unless they are created and maintained by government funds. Different nations put different emphasis on the roles of the public and private sectors. Some...

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