Answer to Question #257447 in Accounting for Angel

Question

Briefly give a view of public sector organizations

Answer 1

Public sector organizations are organizations that are operated by the government. The theory of a public sector organization was first found in the development of the democratic city-state described by Plato in The Republic; where by public sector organizations originates in the English-speaking world and which can be drawn to the arrival of William the Conqueror on British shores. This differs with private sector organizations, which are controlled by private entities. The main goal of business organizations is to gain profit, while the organizations in public sector are non-profit making organizations. Therefore the problems arise when the performance measurement methods used for public organizations are applied for the public ones.

Public sector organizations can be characterized by; Government ownership where by the organization is totally owned by government, Government management and control, Public accountability and service motive.

Public sector organizations are formed in three different forms namely; Departmental undertakings, Public corporations and Government company.