Difference between public and
private enterprises
Owner
ship – Public
sector / company owned by government capital but a private company have one or
more member to invest.
Management – Public Company full manage by
government policy with in frame work. Some- time this situation become rigid,
depressed by lot of rules and have a little scope. But a private company
managed by owner or investor & has a wide area to work.
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| public and private enterprises |
Objective – Public sector has a social
objective & always works for the society benefit or social economic area.
But a private company always formed for economic goal or profit.
Capital – Public company formed fully by
government or at least 51% stake in any company. In private, it’s fully
financed by its investor or a majority of group.
Flexibility – A public company always follow
the rules and regulation which is lead down by government so there are less
flexibility but in private company, they are established for economic goals or
profit and they are more flexibility for future operation.
