Correct Option
The correct option is 2 only
Explanation
Economic activities are classified into sectors based on ownership. In a mixed economy, these are primarily divided into the Public Sector (owned by the government) and the Private Sector (owned by private individuals or companies). The fundamental distinction lies in the ownership of assets and the driving motive behind operations.
Statement-wise Analysis
- Statement 1 is Incorrect: In the private sector, the ownership of assets and the delivery of services are in the hands of private individuals or companies. Decisions regarding production and pricing are driven by market forces.
- Statement 2 is Correct: The primary motive of the private sector is profit maximization. In contrast, the main motive of the public sector is public welfare and social benefit.
- Statement 3 is Incorrect: TISCO (Tata Iron and Steel Company Limited, now Tata Steel) is a prominent example of a private sector enterprise. Examples of public sector enterprises include SAIL (Steel Authority of India Limited) and ONGC (Oil and Natural Gas Corporation).
Key Takeaway
The Private Sector is characterized by private ownership of assets and a profit motive, whereas the Public Sector is characterized by government ownership and a social welfare motive.