Business Sectors

Every country has two kinds of sectors – private sector and public sector. Private sector companies are all those businesses that are not owned by the government while public sector is all the government holdings in a country. The character of these two sectors changes depending on the economy of the country. Mixed economy is the only kind of economy where both the sectors coexist harmoniously. In other kinds of economies, either of the two sectors play a dominant role. For example, in the capitalism economy, private sector is highly empowered with regard to all business matters and the government only plays the role of law enforcer. Although public sector undertakings do exist, it is the private sector that forms the majority of the economy. This scenario is exactly opposite when it comes to socialism or communist economy. Here, all the power rests with the government and private sector has very limited powers. However, when you talk specifically about business sectors, government is excluded from the scenario. Sectors such as non-profit organizations, private households, all general government activities are excluded as well.

Private Business Sector

Private sector is the major dominant force in business sector. This refers to capital investments by individuals, groups or communities that are not a part of any governmental organizations. In other words, private business sectors are defined as any body that is not a subset of a government organization and functions with an aim of making profits. Public sector, on the other hand, is more service oriented rather than profit oriented. There is a lot of legality involved in private sector in order to keep the activities under legal control, while still providing all the resources required for full functioning. Private business sectors can have a number of kinds of establishments depending on who and how the business is set up. The major divisions are businesses with single traders or owner, partnership ventures between two nongovernmental organizations, private limited company that can have private shares and public limited companies where shares can go public in the market.

Public Limited Companies

Public limited companies can again be of different kinds. The two main kinds of this business sector are franchise operations where an individual can run a business using the name of a parent company and the second kind is workers cooperative where workers have equal say in businesses and enjoy equal pays. There are several other kinds under this category. Companies that belong to this business sector are the ones that are listed in stock market listings.

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