Concopt of Private Sector Its features,Merit,Demerits.

 There are three types of economy present in the world.These are socialism,captilism and mixed.Every economy has many positive features merit and demerit.It depends on government that which type of economy they implement in their country.

There are two types of sectors present in economy.These are public sector and private sector.Public sector plays a very very important role in socialism economy whereas private sector plays a very very important role in captilism.Private sector also plays an important role in mixed economy.

Definition-

The sector that is owned,managed and controlled by individuals or group of individuals this type of sector is called by Private sector.

In other words we can say that the sector which is consisted the activity of business like Production,Demand forcasting by individuals or group of individuals this type of sector is called private sector.

Features-

1.It is established by individuals or group of individuals.

2.It is managed and controlled by individuals or group of individuals.

3.It has an independent management.

4.Its motive to earn maximu profit.

5.It has full autonomy.

6.It faces less political interference.

Merit-

1.It generates finance for the development of country.

2.It utilises resources at optimum level.

3.It fosters competition in country that is beneficial for customers.

4.It increases production of country.

5.It provides different types of tax to government that is used in the development of country.

Demerits-

1.Its product price is high.

2.It concentrations power in one hand.

3.It supports monopoly in economy.

4.It generates black money.

5.It oppress human resource force.