What is meant by enterprise ? Classify enterprises on the basis of ownership


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When a person or a group of persons are engaged in the production or distribution of goods or services which are meant mainly for the purpose of sale, it is called an enterprise.
Enterprises can be classified into Private sector enterprise and Public sector enterprise.
Private sector enterprises are owned and run by individuals, or a group of individuals, with the aim of making profit.
Public sector enterprises are owned and run by the government. They enable the government to have control over the economy for the benefit of the people in general.
When both the government and the individual enter into an agreement to run enterprise on partnership basis, they are referred to as joint enterprises.