What Are The Private Sector Objectives?

Basically the basic objective of the private sector is to get the highest profit as much as they can get. The profit is the Earning before interest and tax. Taxes are government implemented therefore, private sector tries to give a great cushion to EBIT against interest and tax. In at attempt to achieve this aim, the companies in private sector produces where their total revenues are far higher than total costs. This creates high reserves for the stockholders.

This shows that private sector has to fulfill the desires of the shareholders and it will always aim to fulfill their satisfaction. Another objective of private sector is to increase the market shares to get a sustainable competitive advantage. Companies in the private sector also want to improve their image by showing social responsibility. Moreover, private sector is more involved in sponsoring events because they know that such events can make their positioning and image better in the market.

• To Study of the Mutual fund