1. In terms of ownership & control all business fall into one of 2 sectors

2. Businesses in this sector are usually known as PUBLIC CORPORATIONS These are businesses which government own and – usually – control. Most of the time these will be businesses dealing with Goods and Services that the government deem strategically valuable. Typical examples include Electricity, Health, Education. The main objective of public business should be customer welfare The public sector tends to be large in societies who believe the government should take an active role in controlling resources & allocation. They have a poor record on efficiency..

3. Businesses in this sector can take many different forms. These are businesses which private individuals own and control. The main objective of private business is usually profit The private sector tends to be large in societies who believe that the pursuit of profit will create competition, which will create efficiency. They have a poor record on even allocation of resources.

4. You can sometimes get a Public-private partnership (PPP) which describes a venture which is funded and operated through a partnership of government and one or more private sector companies.private sector In other types capital investment is made by the private sector on the promise of a contract with the government to provide certain services In some types of PPP, the government uses tax revenue to provide capital for investment, with operations run jointly with the private sectorcapital There is a third way!

5. Discuss what you know about the dis/advantages of each sector What businesses are in what sector on ES – and why?