Question
What is the difference between Public and Private sector?

Answer

Differences between public and private sectors are summarised in the table given below:
S. No.
Basis
Public Sector
Private Sector
1.
Ownership
These are owned by the governmentcentral or state.
These are owned by individuals or group of individuals.
2.
Aim
It aims at social welfare.
It aims at profit maximisation.
3.
Efficiency
It is likely to be less efficient due to lack of autonomy and too much interference.
It is likely to be more efficient due to quick decision making.
4.
Management Control
It is subject to control from the government.
It is controlled only by business laws but not directly by the government.
5.
Accountability
These are accountable to the government.
These are accountable to the owners.
6.
Example
Railways, BHEL, LIC Ltd, SAIL, GAIL.
Reliance Industries Limited, Partnership firms, HUF, Cooperatives etc.

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