Fundamentals
Give an example of a public sector organization and explain why
Possible examples:
State Healthcare
Education Services
Emergency Services
True or False?
Share holders of publicly owned companies can only sell their shares if they have prior permission from other shareholders.
False - Only privately held companies have that condition
What is the objective of a For-Profit Public Sector Enterprise?
Possible Answers:
- Generate a Financial Profit (Surplus)
- Fulfill a need of the public by providing a service for society
Give an advantage and disadvantage of working in the Public Sector
Advantages:
- High job security
- Potential government benefits
- Social impact
Disadvantages:
- Lower pay (sometimes)
- Less career flexibility
Define the Public Sector
Part of the economy controlled by the government.
What is the difference between a publicly held company and a public sector company?
Possible Answers:
Publicly Held Company: Owned by its shareholders Public Sector Company: Owned by the government
Publicly Held Company: Aims to maximize profit
Public Sector Company: Aims to provide a service to the public
Publicly Held Company: Raises funds by selling shares and making profit
Public Sector Company: Funded primarily by taxpayer money and government funds.
Name at least 1 (specific) For-Profit Public Enterprise
Potential Answers:
- National postal services
- State owned railway systems
- Public service television channels
What is one major problem faced by the public sector?
Potential Answers:
- Inefficiency
- Relient on taxation
- Corruption in the government
Case Study Question
"Funded primarily through taxation"
"aims to ensure that healthcare is free at the point of use"
Define "Flotation"
The process of issuing and selling shares to public investors.
True of False?
A for-profit social enterprise that was originally founded by a city government to address a societal issue and later operates with financial independence is still considered part of the public sector.
False - A public sector company is by definition run/owned by the government. Once they gain financial independence from the government, they are considered to be part of the private sector.
Give 2 similarities between private sector for-profit companies and public sector for-profit companies.
Potential Answers:
- Both aim to generate financial profit
- They earn income primarily by selling goods or services to customers.
- Both are usually organized as formal business entities.
- They operate in competitive markets