what are the merits and demerits of public and private sectors ???

Merits of Public Sector:

• High degree of government control on the operations of a company

• Ensures greater level of public accountability

• The revenue so earned directly goes to the government treasury and thus, acts as a source of income for the government.

Demerits of public sector:

• As operations are controlled by government, it lacks flexibility in decision making.

• These companies can not take up business opportunities that are risky in nature.

• Often a high degree of corruption exists in public sector operations.

Merits of private sector:

• High flexibility and quick decision making.

• The profits of the company can be reaped directly by the owners which in turn acts as a motivating factor.

• Willing to take up risky as well as non-risky business ventures.

Demerits of private sector:

• There always persist a possibility of conflicts among the individuals owning the private companies

• Less emphasis on social welfare as main focus is on making profit.

• Such companies lack the public confidence until and unless they are well established.