2. Private/Public Sector of the
Economy
Private Sector Organizations
– Owned and controlled by private individuals
– Are not owned by the government
– Main goal (usually) is profit
– Example: Coca Cola, Astrobar
Public Sector Organizations
– Owned and controlled by the government
– These organizations are called public
corporations
– Ensures everyone has access to basic needs
– Protects citizens
– Reduces unemployment
– Examples: State schools, postal service - USPS
3. Privatization
When a public corporation’s assets have
been sold or transferred to the private
sector
Good or bad?
– Benefits
Inefficient monopolies are exposed to competition
(lower prices in some cases)
More choice to consumers
Competition creates innovation
Less financial burden on taxpayers
A way for gov’t to raise money (in short term)
– Drawbacks
Individuals pay for basic services
Organizations main goal is profit (which can affect
quality)
4. Types of Organizations Private
Sector
Profit-based Organizations
– Sole Trader
– Partnerships
– Companies
Private Limited Companies
Public Limited Companies
Non-profit Organizations (NPOs)
– Non-governmental Organizations (NGOs)
– Charities
– Pressure Groups
