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

Answer 1

Public Sector = Government regulated organizations owned by shareholders as listed through a stock exchange. "Public" because of the access available for public purchase or trade shares.

Private Sector = Privately owned companies (mostly small businesses) run by an individual or small group instead of shareholders. Such companies are unregulated by federal authority and make up the majority of labor forces in most countries.

Answer 2

A "public sector" organisation is one that is controlled by the government. It is called "public" because the government is responsible to the entire public. An example of a public sector organisation is the Department of Justice, or a police or fire department.

A "private sector" organisation is one that is owned and controlled by private individuals, not the government and usually exists to make a profit for its shareholders. Both large and small corporations are considered to be private sector organisations. A private sector organisation does not have the same responsibility to the public that a public sector organisation does; its main responsibility is to its shareholders (the people who own it).

Answer 3

The public sector is a part of the state that deals with the delivery of goods and services by and for the government, whether national, regional or local/municipal.

Examples of public sector activity range from delivering social security, administering urban planning and organizing national defenses.

In economics, the private sector is that part of the economy which is both run for private profit and is not controlled by the state. By contrast, enterprises that are part of the state are part of the public sector; private, non-profit organizations are regarded as part of the voluntary sector.

Answer 4

In the US:

The private sector refers to all companies without shareholders nor listing on the federal stock exchange. Generally the private sector belongs to small business groups as run by private individuals or a small group and unregulated by federal authority.

The public sector refers to all companies listed on the federal stock exchange as available for public purchase or trade of shares. All public companies are regulated by the federal government.

Answer 5

Understand that your Q can also be taken to mean the differences in organization between "public" and "private" companies, but v entities, there are lots of differences, chiefly stemming from their difference in focus; one is organized for profit or other gain, and the other for service. In the first case, it's basically the difference between the ultimate power resting with a king, or a board of directors.

Answer 6

The public sector is the organization which is controlled or under government and private sector is the organization which is owned by private owners like Wal Mart, KFC, ect.