Commercial Applications
Give a comparison between public sector, private sector and joint sector enterprises.
Commercial Orgs Intro
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Answer
| S.No. | Basis of Distinction | Private Sector Enterprises | Public Sector Enterprises | Joint Sector Enterprises |
|---|---|---|---|---|
| 1. | Ownership | Private businessmen. | Government. | Mixed (Government, private businessmen, public). |
| 2. | Management | Private owners and professional managers. | Government. | Combined (representatives of government, private businessmen and public). |
| 3. | Main Objective | Profit. | Social objectives / service to public. | Profit and social objectives both. |
| 4. | Accountability | To the owners. | To the public (through Parliament). | Both to private owners and the public. |
| 5. | Source of Capital | Arranged by private owners. | Provided by the government. | Government, private businessmen and public (typically 26%, 25%, 49% respectively). |
| 6. | Government Participation | No state participation in ownership and control. | Fully owned and controlled by government. | Partial — shared with private parties. |
| 7. | Risk | Borne entirely by private owners. | Borne by the government. | Shared between government and private parties. |
| 8. | Examples | Reliance Industries, Hindustan Unilever, Century Textiles, Tata Iron and Steel Company. | Indian Railways, Reserve Bank of India, Food Corporation of India, Posts and Telegraphs. | Cochin Refineries, Gujarat State Fertiliser Company, Pragya Tools Corporation, India Rare Earths Limited. |
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