Private and Public Sector

Private and Public Sector

by Shanica Burrell

​What is a Private Sector?

​Private Sector is is the part of the economy that is funded by individuals and is, therefore, owned and controlled by private firms. The objective of the private sector is to make profits.

​Examples of Firms in the Private Sector

• family owned businesses

• ​One-owner businesses

• ​large business with several investors

• ​multinational companies

​Features of Firms in Private Sector

• ​the aim is to make a profit

• ​owners are free to make decisions

• ​the business is funded by owners or private individuals

• ​profits are shared among shareholders or those who invest in the business

• ​there is little or no government control

​What is a Public Sector?

​Public Sector is that part of the economy that is financed by the government through the taxpayers and is operated and controlled by the government. The government in many countries, owns and runs key industries such as rail and bus companies; oil, gas and electricity.

​Examples of Public Sector Organizations

• ​water and sewage services

• ​Jamaica telecommunication services

• ​government agencies such as the Ministry of Health, Education and Social Services

• ​government departments such as the tax department

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Features of Firms in Public Sector

​

• ​is funded by the government through taxation

• ​aims to provide a services at the lowest possible price

• ​uses profits to improve the efficiency of the firm or to benefit all citizens

• ​is driven by the need to provide goods and services to the population

Multiple Choice

Jim maintains his family by using his private vehicle for hire.

• private

• public

Multiple Choice

Mary goes to Florida every three month to shop. On her return she sells her goods in the vendors' mall.

• private

• public

Multiple Choice

State Co. is a company of which the government has 60% ownership; it supplies water to an Asian country.

• Private

• Public

Multiple Choice

Agri. co., an agricultural company that grants loans to farmers, is controlled by the state.

• private

• public

Multiple Choice

Power Supply Inc. is a joint venture firm which supplies energy to the country.

• private

• public

Multiple Choice

The postal agency is a statutory body that is controlled by an government-appointed board of directors

• private

• public

Multiple Choice

A public transport company that is funded by taxpayers.

• private

• public

Multiple Choice

A group of designers and seamstresses formed themselves into a company, Jamaica Garments, which supplies uniforms and variety of clothes for the government.

• private

• public

Multiple Choice

A multinational firm that has been serving food and related beverages to the Caribbean area.

• private

• public

Multiple Choice

Samson's Housing Development builds homes throughout the Caribbean and Latin American countries.

• private

• public