Private & Public Sector

Question 1

Motives for operating in the public sector?

Answer 1

1) provision of goods and services
2) cater to the entire population
3) provide public and merit goods (education, national defense etc.)
4) Limited or no competition

Question 2

Motives for operating in the private sector?

Answer 2

1) to earn profit
2) cater to a target market or niche market
3) provide consumer goods, etc.
4) strong competition among firms

Question 3

Who owns the enterprises in the public sector?

Answer 3

the government

Question 4

Who owns the enterprises in the private sector?

Answer 4

individuals, eg. shareholders

Question 5

Examples of businesses in the public sector

Answer 5

public corporations
government owned companies

Question 6

Examples of businesses in the private sector

Answer 6

sole traders
partnerships
companies
co-operatives

Question 7

Define privatization

Answer 7

movement from the public sector to the private sector

Question 8

Define nationalization

Answer 8

movement from the private sector to the public sector

Question 9

When a business moves from being publicly owned this is called…?

Answer 9

privatization

Question 10

Movement from the private sector to the public sector is called…?

Answer 10

nationalization