private and public sector

meibaker

can someone help me on this as i need to do additional question for unit 15, my tutor asks me to revise on 2 question, this is one of the question. Explain the difference in regulations between the Public Sector and Private Sector when investing surplus funds.
many thanks

PGM

Only difference I can see is; with private companies you're investing surplus funds for the benefit of shareholders, so it must be done in their best interests ie risk and reward.

And with public fund surplus its on behalf of the general public. So investments would be more about safe investments. As they can't sell shares if unhappy with investment policies.

Rinske

Have a search on the forums, sandy posted some really good comments on this!

Just not sure where the links are atm!

meibaker

thanks for all your answers, this will be my third time to do this question for my skill test! even though i have been use the answers from the links, but it does not seems to let me pass on this subject! maybe i didn't write enough! think i will try to explain as much as possible this time!

SandyHood

meibaker
I imagine that there must be a very special reason why you have been allowed three attempts at answering the same question.
I am under clear instructions that a skills test candidate is allowed to be tested on a topic using a different question if she/he passed 80+% of the whole skills test AND that should the second attempt not meet the criteria needed to pass then the whole skills test will be judged as not competent.

If you are finding it difficult to answer the question give an example. Suggest what a local authority such as West Sussex County Council would have to do if they had £1.5 millions of cash available for 3-4 months and wished to invest it, and what British Home Stores would have to do in the same situation.

You can cite the regulations and the fundamental issues and differences between the organisation which is basically managing money collected from the public in tax (and before anyone adds that not all WSCCs income is tax, please accept that most is) and another organisation where the money they have has been earned by commercial activity with money that the shareholders have invested.

If you show you know what you are writing about, I reckon you'll be competent. If you try to learn a sentence from a book and don't know what you are writing about you won't be.

meibaker

thanks sandy, i will defo need to explain more this time! what i mean 3 times for this question is ive failed the first exam which has similar question in, and the second time i've got 80% correct,and also has similar question in it, so my tutor is giving me additional question, and told me which area to revises! and this question is one of the question, so total its going to be my third time answer this question!
going to take additional question this week, really hope i will pass this one! fingers crossed!

SandyHood

Best wishes
At least now you should be going in well aware of the documentation needed in the public sector and the less specific responsibility to shareholders in the private.

After all, a company set up as an investment trust has to take risks as part of its business so cannot be tied to the same procedural constraints that an NHS trust or a local authority might have.