Public Sector and Private Sector

Question 1

What is public sector?

Answer 1

Any business which is owned by the country/government as a whole and run on behalf of the people.This includes vital activities such as health,education and defence.

Question 2

Name 4 examples of public sector businesses

Answer 2

• The NHS(National health service)
• The education system(schools)
• The army(Defence)
• Roads and public transport

Question 3

Name four differences between the public and private sector

Answer 3

• Public sector is owned by the country and run by the government. Private sector is owned by individuals
• In the public sector profits are handed back to the government, local authority or reinvested. Private sector profits are distributed to the owners.
• Public sectors main aim is to provide a service. These services may not be profitable and that’s why they are not in the private sector or the government could see them as essential e.g. Healthcare
• Capital in the public sector comes from the treasury or local authority. In the private sector it is raised by individual owners.

Question 4

What is private sector?

Answer 4

the part of the national economy that is not under direct state control.

Question 5

Name four examples of private sector businesses

Answer 5

• Tesco
• McDonald’s
• JD
• Subway