1.2d Public and Private Sector Flashcards
1
Q
What does the private sector consist of?
A
Any business owned and run by private individuals
2
Q
Why would a business be privatised?
A
- Improved efficiency
- No political agenda
- Country gains revenue from selling the business
3
Q
What does the public sector consist of?
A
Any business owned and operated by the government that usually provides essential services
4
Q
What are businesses in the public sector known as?
A
Nationalised industries
5
Q
What regulatory bodies monitor previously nationalised businesses?
A
Ofwat, Ofcom, Ofqual
6
Q
Nationalisation definition
A
When a private sector business is taken over by the government and moves into the public sector.
7
Q
Why does nationalisation happen?
A
- Government can ensure essential services are provided to all
- Motives of business do not have to be profit led
- Protects struggling industries
