Question:medium

“Activities in the private sector are guided by the motive to earn profits.” Examine the statement with examples.

Updated On: Jan 13, 2026
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Solution and Explanation

The private sector's primary objective is profit, achieved through customer satisfaction and innovation. Firms such as Tata and Infosys invest in service quality for competitive advantage. This profit-driven approach can result in cost-reduction strategies, like outsourcing, impacting job security. Nevertheless, private businesses are substantial contributors to GDP and employment. For example, India's IT sector offers well-compensated employment and generates export revenue, fostering economic expansion.

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