Angel asked in Business & FinanceInvesting · 1 decade ago

information about privare and public sector?

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  • Anonymous
    1 decade ago
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    Public sector and private sector

    The domestic economy is composed of public and private sectors. The definition of the each sector differs slightly, depending on the data source used.

    The United Kingdom National Accounts defines the public sector as comprising of central government, local government and public corporations. The private sector, as comprising private non-financial corporations, financial corporations, households and the non-profit institutions serving households. The Labour Force Survey (LFS) classification is similar, although it is based on people and not jobs. The National Accounts classification uses workforce analysis based on jobs data from business surveys. The LFS relies on respondent self-assessment.

    Further differences relate to the treatment of educational institutions and general medical practitioners. Both the National Accounts and the LFS include local authority-controlled schools as public sector. However universities and higher education colleges, further education and sixth form colleges are treated by the National Accounts as private (non-profit making) sector, but by the LFS as public sector. The National Accounts also treats all general medical practitioners as private sector. Their classification in the LFS depends whether their practice is mainly NHS or private. Interviewers are instructed to probe respondents to determine which coding is most appropriate.

    Central government includes all administrative departments of government and other central agencies and non-departmental public bodies. City academies are also classified to central government.

    Local government includes all government units with a local remit. The sub-sector includes all areas of administrative authorities, magistrates courts, the probation service in England and Wales and police forces and their civilian staff. Trading activities within local government which produce market output (for example, housing and municipally owned markets) are regarded as quasi-corporations (organisations which behave like corporations) and appear under public corporations.

    Public corporations are companies or quasi-corporations controlled by government. Examples include British Nuclear Fuels plc and Royal Mail. These companies receive more than half their income from the sales of goods or services into the market place.

    Non-financial corporations are those which exist to produce goods and non-financial services. In the UK, they are mainly public limited companies, private companies and partnerships.

    Financial corporations are those engaged primarily in financial activities such as banking and insurance.

    Households represent all UK residents, as they are receivers of income and consumers of products. It includes those in institutions, such as prisons and hospitals, as well as conventional family units. It also contains one-person businesses, where household and business accounts cannot be separated.

    Non-profit institutions serving households include productive units such as charities and universities.

    Lists of central and local government units, and public corporations are available on the National Statistics website. Definitions used for the UK National Accounts are available in the UK National Accounts Sector Classification Guide. For further information on LFS classification, see the Labour Force Survey User Guide Volume 5.

  • 1 decade ago

    In general, the public sector is govenment, education, transportation and anything that is funded by taxes. The private sector consists of businesses, corporations, most banks and anything that is funded by investors.

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