Question: Can Public Sector Compete With Private Sector?

Can the public sector companies compete with private sector in terms of profit and efficiency?

No, public sector companies cannot compete with private sector in terms of projects and efficiency.

Motive: The main objective of a public sector company is welfare of public but for a private sector company it is profitability..

What is the difference between public sector and private sector industry?

The private sector is the part of the economy that is run by individuals and companies for profit and is not state controlled. … Companies and corporations that are government run are part of what is known as the public sector, while charities and other nonprofit organizations are part of the voluntary sector.

Which sector is called public sector give some examples?

Public sectors include public goods and governmental services such as the military, law enforcement, infrastructure (public roads, bridges, tunnels, water supply, sewers, electrical grids, telecommunications, etc.), public transit, public education, along with health care and those working for the government itself, …

Why public sector is better than private?

Both the public and private sector have a role to play. For general businesses without externalities, the private sector is likely to be more efficient and better at job creation. … However, the private sector also needs a good public sector to provide, education, healthcare and infrastructure investment.

What are the disadvantages of public sector?

Some of the disadvantages of operating a public corporation include:Difficult to manage.Risk of producing inefficient products.Financial burden.Political interference.Misuse of power.Consumer interests ignored.Expensive to maintain and operate.Anti-social activities, i.e., charging too much for a product.

What are the disadvantages of public sector turning into the private sector?

There are lot of legal formalities.strict controls and regulations.The original owners may lose control.huge in size and may face management problems.Very slow in decision making.Workers (unlike in private concern) shrink work.Incompetent person may occupy very high level.

What is main motive of private sector?

Motive: The main motive of private sector is to earn profit and, whereas the main motive of public sector is to provide services to public.

What is the purpose of public sector?

Public sector helps the government to enforce social control on trade and industry for ensuring equitable distribution of goods and services, Public sector organisations are businesses set up with the aim of providing a public service rather than making a profit.

What are the disadvantages of private sector?

What are the Disadvantages of a Private Company?Smaller resources: A private company cannot have more than fifty members. … Lack of transferability of shares: There are restrictions on the transfer of shares in a private company. … Poor protection to members: … No valuation of investment: … Lack of public confidence: