Question

Write short answer to the followings.

What are the features of private sector?

Answer 1

The following are some of the main features of private sector organisations.

1. Private ownership: The ownership of assets and delivery of assets lie in the hands of private individuals.
2. Profit motive: The main motive of these enterprises is to earn profit.
3. Control: The complete control of the management lies in the hands of private businessmen.
4. Risk bearing: The owner of a private sector organization is the bearer of all types of risks associated with the business.
5. High research and development- Private sector enterprises have various research and development centres (R&D) that come up with new technologies to minimise costs.
6. Customer satisfaction- Private sector enterprises ensure that the customer preferences are taken into account and the society benefits from the private sector.