Private, Public And Third Sector Organisations

Question 1

Private sector

Answer 1

Businesses owned and run by private individuals, usually for profit. Often referred to as private enterprise

Question 2

Public sector

Answer 2

Businesses and organisations owned and run by local or central government, who is objective is to provide a service rather than make a profit e.g. BBC
NHS

Question 3

Public sector advantages

Answer 3

All essential services of free and therefore the general public will not be charged for them
Directly controlled by government so cannot be used inappropriately
Costs of public sector are covered by the taxpayer so could not go too much into debt
The government control the service and therefore the profit margins Are kept low

Question 4

Public sector disadvantages

Answer 4

All money used comes from taxpayer so therefore you’re not getting the best value for money
There is less competition to push prices down
Some public sector organisations are expensive to run
Poor services, no competition, everyone is entitled to it

Question 5

Private sector advantages

Answer 5

Owned by private companies and seem to be cheaper to run
Have more control in terms of wages and costing of the service
Use of profits to invest for the future

Question 6

Private sector disadvantages

Answer 6

More risk involved in its survival
May have to be helped out by the public sector
Can charge whatever price they like

Question 7

Nationalisation

Answer 7

Government taking ownership and control of the business up or industry from the private sectors by buying up all its shares

Question 8

Facts about nationalisation

Answer 8

Up to the 1980s the public sector was much larger
Government owned all companies providing gas, electricity, water, telephone and railways
Felt by the government in the 1940s that owning these industries would give them more control

Question 9

Privatisation

Answer 9

Selling state(government ) owned industries to the private sector

Question 10

Privatisation facts

Answer 10

The 1980s government felt that these industries should be privatised

Question 11

Third sector organisations

Answer 11

The range of organisations that are neither public sector no private sector. It includes voluntary and community organisations both registered charities and other organisations such as associations, self help groups and community groups, social enterprises and co-operatives

Question 12

Examples of third sector organisations

Answer 12

RSPCA, Church of England, salvation army, cancer research, youth hostel Association, Scout and guides

Question 13

Why do third sector organisations differ from the private and public sectors

Answer 13

Value driven motivated to achieve social goals not to make a profit
Reinvest any surplices generated in the pursuit of their goals
Sometimes not for profit organisations
Understand the needs of service users and communities
Closeness to the people that provide the service for
Ability to provide a service that no other organisation can find easy to do
Tax relief