Question

Write short answer to the followings.

What are the merits of private sector?

Answer 1

Merits of private sector:
i. Innovation- Private companies have various research and development centres that come up with new technologies and innovations in order to minimise the costs.

ii. Decision making- Under private sector industries the management is in private hands which in turn facilitate quick decision-making.

iii. Efficiency- The goals of industries in private sector are set in a manner such that the targets are met efficiently and effectively.

iv. Profit motive- The profits of the private sector enterprises can be reaped directly by the owners. This characteristic of private sector enterprises acts as a motivating factor.