Firms owned by shareholders and individuals belong to which sector?

• A. Private Sector
• B. Public Sector
• C. Government
• D. Market

Answer: (A)

Ownership and who controls the business define its sector. When a firm is owned by private individuals or by shareholders who invest capital to earn profits, it sits in the private sector, which covers all non-government businesses aiming to earn profits. The public sector includes government-owned organizations like state-run hospitals and schools. The market, meanwhile, is the arena where buyers and sellers interact; it is not a sector of ownership. So firms owned by shareholders and individuals are part of the private sector.