I need an explanation for this Law question to help me study.
1.Public is an organization, or association which can be, which as a rule is claimed by the government here and there or discussion. The private sector is the direct inverse and claimed by private organizations, residents, and associations. While both private and public areas utilizes budgeting, they use them in various manners to help meet the objective they hoping to accomplish.
Public agencies are not subject to the market pressures present in the private sector.
2.I appreciate your comments about accountability. Would it be accurate to say one difference between private sector and public sector budgets relates to how resources are tracked? For instance, a private sector budget attempts to show a profit while a public sector budget is based on showing how resources and assets are allocated. Making a profit is not the goal of the public sector. If a private for-profit company doesn’t make a profit, they likely will not stay in business. If a public organization doesn’t manage the money generated by taxes and other sources of revenue to the satisfaction of the public it serves, then they will likely answer to the voters….at a minimum.