Public Sector, Private Sector and Global Enterprises — OCM STD 11 Commerce — Question
Gujarat BoardEnglish MediumSTD 11 CommerceOCMPublic Sector, Private Sector and Global Enterprises5 Marks
Question
Prepare a note on meaning and characteristics of Private Enterprise.
✓
Answer
Introduction :
Trade and commerce started with private sector. That is way it is considered the oldest form of trade and commerce. Private sector has played vital role in economic progress of country and in creation of employment opportunities in the country. With the passage of time many change have occurred in business units of private sector. Due to its special features they exist against giant industries.
Trade and commerce started with private sector.
That is why it is considered the oldest form of trade and commerce.
Private sector has played vital role in economic progress of the country, in national income of the country and in creation of employment opportunities in the country.
With the passage of time many changes have occurred in business units or private sector.
Due to its special features they exist against giant sized industries.
Meaning of Private Enterprise
When the ownership of a business is in the hands of an individual or group of individuals and the main objective of the business is to earn profit is called a private enterprise.
It includes Sole Proprietorship. Hindu Undivided Firm, Co-operative society and joint venture companies.
Characteristics of Private Enterprise : They are as below :
The oldest form of Trade and business :
Trade and commerce started with private enterprise which is the oldest form of business unit.
A big share in economy :
Private enterprise play major and vital role in the economy of India.
Actually economy cannot exist without private enterprise.
Employment generation :
Private Industries are over the world provide employment to number of people.
Any person in any part of the country can start business with limited capital. under the provision of law and can improve his standard of living.
Social Responsibility along with profit :
The main objective of private sector is to earn profit.
Now-a-days the motive of social responsibility too is accepted. Preservation of environment, women empowerment, literacy, cleanliness campaign, etc. are given importance by private enterprise.
They have become aware of their social responsibilities and contribute to it
Flexibility :
Private sector has always been changing as per the needs of society. Compare to other forms of business private enterprises make changes in their business activities to satisfy the needs of society.
Global existence :
Private enterprise form of business is accepted all over the world. Its laws are different in various centuries.
Inclusion of Multinational corporation :
Business activities are done by the company in more than one country is known as multinational company.
Private enterprises too have developed their activities in many countries of the world in the 19th century. They have started manufacturing and sale in more than one countries.
Improvement in standard of living :
Private enterprises have been successful in satisfying the needs of society due to their various business activities.
As a result there is improvement in the living standard of people.
Conclusion :
Public companies of giant size exist due to huge support of government and yet private enterprise sector does exist against this giant companies due to its special features.
Private sector has contributed generously in employment creation, in nation income and in satisfying social needs of people of society.
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