Tag: Public

  • Cheap Public Liability Insurance for Small Business

    Cheap Public Liability Insurance for Small Business

    Protect your business from liability claims with cheap public liability insurance for small business. Learn how to evaluate risks, find the right provider, and compare prices & coverage options here. #CheapPublicLiabilityInsuranceforSmallBusiness

    Cheap Public Liability Insurance for Small Business: A Comprehensive Guide

    As a small business owner, it’s important to protect your business from liability claims. Public Liability Insurance provides coverage in case your business activities cause property damage or injury to a third party. Here is a comprehensive guide to help you find cheap Public Liability Insurance for your small business:

    Cheap Public Liability Insurance for Small Business Image
    Photo from ilearnlot.com

    1. Assess Your Business Needs

    Evaluate the risks specific to your business. Consider the type of work you do, the number of employees, and the nature of your interactions with the public. This will help you determine the amount of coverage you need.

    2. Research Insurance Providers

    Look for insurance providers that specialize in small business coverage. Research their reputation, customer reviews, and financial stability. Consider their expertise in handling public liability claims.

    3. Compare Quotes

    Obtain quotes from multiple insurance companies to compare prices and coverage options. Make sure you provide accurate information about your business to obtain accurate quotes.

    4. Consider Policy Limits and Exclusions

    Review the policy limits to ensure they meet your coverage needs. Pay attention to any exclusions or limitations that may affect your business. Understand what situations may not covered.

    5. Seek Discounts

    Inquire about available discounts. Some insurance companies offer discounts for small businesses, such as bundling multiple policies or having security measures in place.

    6. Review Deductibles

    Consider the deductible amount you are comfortable with. A higher deductible can lower your premium, but make sure you can afford to pay it if needed.

    7. Consult an Insurance Broker

    If you find the process overwhelming or need assistance, consider consulting an insurance broker who specializes in small business insurance. They can help you find the best coverage at the most competitive price.

    8. Review and Update Regularly

    Regularly review your insurance coverage and update it as your business evolves. Notify your insurance provider of any changes that may affect your coverage needs.

    Remember, while cost is important, it is also crucial to ensure that the insurance policy provides sufficient coverage for your business. Take the time to research, compare quotes, and consult with professionals to find the best cheap public liability insurance for your small business.

    Best Cheap Public Liability Insurance for Small Business

    Finding the best cheap public liability insurance for your small business can be challenging, but with some research and careful consideration, you can find a provider that offers affordable coverage without compromising on quality. Here are a few insurance companies that are known for providing excellent coverage at competitive rates:

    Hiscox:

    Hiscox is a popular choice among small business owners for their tailored insurance solutions. They understand the unique needs and risks associated with different industries and offer customizable coverage options. When it comes to public liability insurance, Hiscox provides competitive rates and flexible policies that can tailored to meet your specific requirements. Here are some pros and cons of choosing Hiscox for your insurance needs:

    Pros of Hiscox:

    • Specialized Coverage: Hiscox provides specialized insurance coverage tailored to the needs of various industries and professions. This means that you can get insurance specifically designed for your business, providing you with comprehensive protection.
    • Flexible Policies: Hiscox offers flexible policies that can customized to meet the unique needs of your business. You can choose the coverage limits, deductibles, and additional features that best suit your specific requirements.
    • Online Process: Hiscox offers a convenient and easy-to-use online platform for purchasing and managing insurance policies. This allows you to get a quote, make changes to your policy, and file claims online, saving you time and effort.
    • Solid Reputation: Hiscox is a well-established insurance company with a solid reputation. They have been in the insurance industry for over 100 years and are known for their financial stability and reliable customer service.

    Cons of Hiscox:

    • Higher Premiums: Compared to some other insurance providers, Hiscox premiums may be higher. This is because they specialize in niche markets and offer tailored coverage, which can be pricier than standard policies.
    • Limited Availability: Hiscox’s coverage is not available in all states or countries. Before considering a policy with Hiscox, ensure that they provide coverage in your location and that they offer the specific type of insurance you require.
    • Limited Coverage Options: While Hiscox offers specialized coverage, the range of policy options may be limited compared to larger insurance providers. It’s important to carefully review their policy offerings to ensure they meet all your business needs.
    • No Physical Branches: Hiscox operates primarily online, which means there are no physical branch locations for in-person assistance. While this may not be an issue for most people, some may prefer the option of face-to-face customer support.

    State Farm:

    State Farm is a reputable insurance provider known for its wide range of insurance products, including coverage for small businesses. They offer comprehensive public liability insurance at affordable prices. State Farm has a strong reputation for customer service and is committed to assisting small business owners in finding the right coverage for their needs. State Farm is a reputable insurance provider with a wide range of insurance products, including coverage for small businesses. Here are some pros and cons of State Farm:

    Pros of State Farm:

    • Wide range of insurance products: State Farm offers a comprehensive selection of insurance products, including public liability coverage for small businesses. This means you can find all your insurance needs in one place, simplifying the process of managing your policies.
    • Affordable pricing: State Farm is known for offering competitive prices for its insurance products. They understand the budget constraints of small businesses and strive to provide affordable coverage options without compromising on quality.
    • Strong reputation: State Farm has a solid reputation for its customer service and reliability. With over 90 years of experience in the industry, they have established themselves as a trusted insurance provider.
    • Local agents: State Farm has a large network of local agents who are available to provide personalized support and guidance. This can be particularly helpful for small business owners who prefer face-to-face interactions and value the expertise of a local agent.

    Cons of State Farm:

    • Limited customization: While State Farm offers a range of insurance products, its policies may have limited customization options compared to some other providers. If your business has unique coverage needs, you may find that State Farm’s offerings are more standardized.
    • Coverage limitations: It’s important to carefully review State Farm’s policy limits and exclusions to ensure they align with your business needs. Every insurance policy has limitations, and it’s crucial to understand what covers and what is not before making a decision.
    • Claims handling: Some customers have reported mixed experiences with State Farm’s claims handling process. While the majority of claims are handled efficiently, some individuals have encountered delays or difficulties in resolving their claims.
    • Limited availability: State Farm is primarily available in the United States. If you are located outside of the United States, you may need to explore other insurance providers that operate in your country.

    Next Insurance:

    Next Insurance is a digital insurance company that specializes in serving the needs of small businesses. They have a user-friendly online platform that allows you to get a quote and purchase coverage quickly. Next Insurance understands the budget constraints of small businesses and offers affordable public liability coverage without compromising on quality or service. Also, Next Insurance is a digital insurance company that specializes in serving the needs of small businesses. Here are some pros and cons of Next Insurance:

    Pros of Next Insurance:

    • Easy Online Platform: Next Insurance provides a user-friendly online platform that allows small business owners to get a quote and purchase coverage quickly. Their digital-first approach makes the insurance process convenient and accessible.
    • Affordable Pricing: Next Insurance understands the budget constraints of small businesses and strives to offer affordable coverage options without compromising on quality or service. Also, They provide competitive pricing tailored to the unique needs of each business.
    • Flexible Coverage: Next Insurance offers flexible coverage options that can be customized to meet the specific requirements of different industries and professions. This allows small business owners to get insurance that is tailored to their unique risks and needs.
    • Responsive Customer Support: Next Insurance has a reputation for providing responsive customer support. If you have any questions or need assistance with your insurance policy, their customer support team is available to help you.
    • Fast Claims Process: Next Insurance aims to streamline the claims process for small business owners. They provide a simplified claims system that allows policyholders to easily file and manage claims online, ensuring a quick resolution.

    Cons of Next Insurance:

    • Limited Availability: Next Insurance may not be available in all states or countries. Before considering Next Insurance for your small business, make sure they provide coverage in your location.
    • Less Personalized Service: As a digital insurance company, Next Insurance may offer less personalized service compared to traditional insurance providers. If you prefer face-to-face interactions and the expertise of a local agent, Next Insurance may not be the best fit for you.
    • Limited Coverage Options: While Next Insurance offers coverage tailored to small businesses, the range of policy options may be limited compared to larger insurance providers. Also, It’s important to review their policy offerings to ensure they meet all your business needs.

    Nationwide:

    Nationwide is a well-established insurance company that provides public liability coverage for small businesses. Their extensive experience in the insurance industry allows them to offer a range of options to fit various budgets. With Nationwide, you can expect personalized support from their knowledgeable agents who will work with you to find the most affordable coverage that meets the unique needs of your business. Here are some pros and cons of choosing Nationwide for your insurance needs:

    Pros of Nationwide:

    • Experience and Reputation: Nationwide has extensive experience in the insurance industry and has established a solid reputation for its services. Also, They have been serving customers for many years and are known for their expertise in providing comprehensive coverage.
    • Customizable Coverage: Nationwide offers a range of options to fit various budgets and business needs. They understand that each business is unique and may require different levels of coverage, so they provide customizable policies to meet those specific requirements.
    • Personalized Support: Nationwide has knowledgeable agents who can provide personalized support and guidance throughout the insurance process. They can help you understand your coverage options, answer any questions you may have, and ensure that you are getting the most affordable coverage that meets the unique needs of your business.
    • Financial Stability: Nationwide is a financially stable company, which can give you peace of mind knowing that they have the resources to handle claims and provide the coverage you need.

    Cons of Nationwide:

    • Limited Availability: Nationwide may not be available in all states or countries. Before considering Nationwide for your small business, make sure they provide coverage in your location.
    • Claims Handling: Some customers have reported mixed experiences with Nationwide’s claims handling process. While most claims are handled efficiently, some individuals have encountered delays or difficulties in resolving their claims.
    • Limited Customization: While Nationwide provides customizable coverage options, some businesses may find that their policies have limitations when it comes to tailoring coverage to specific needs. It’s important to carefully review their policy offerings to ensure they meet all your business needs.
    • Pricing: The cost of coverage from Nationwide may not always be the most affordable option for small businesses. Also, It’s important to compare quotes from multiple providers to ensure you are getting the best value for your money.

    Remember, when searching for the best cheap public liability insurance, it’s important to consider more than just the price. Also, Look for a provider that offers comprehensive coverage, excellent customer service, and a reputation for reliability. Additionally, comparing quotes and coverage options from multiple providers will help you make an informed decision. If you’re unsure about which provider to choose, consider consulting with an insurance broker who can provide expert advice and help you navigate the options to find the most affordable coverage for your small business.

    Bottom line

    This comprehensive guide provides small business owners with valuable information on finding affordable public liability insurance. The guide includes eight steps to help assess business needs, research insurance providers, compare quotes, and consider policy limits, discounts, deductibles, and more. It also suggests consulting an insurance broker and regularly reviewing and updating coverage. Additionally, the guide highlights four reputable insurance providers: Hiscox, State Farm, Next Insurance, and Nationwide, providing pros and cons for each. It concludes by emphasizing the importance of considering factors beyond price and consulting with a professional.

    Disclaimer: This guide is intended to provide general information and should not be considered as professional advice. Always consult with an insurance professional to assess your specific needs and requirements.

  • Best Public Liability Insurance for Small Business

    Best Public Liability Insurance for Small Business

    Everything you need to know about the best public liability insurance for small business. Learn the important points, tips for making a claim, and more in this comprehensive guide! #PublicLiabilityInsuranceforSmallBusiness

    Best Public Liability Insurance for Small Business: A Comprehensive Guide

    As a small business owner, it’s crucial to protect your interests and safeguard against potential liabilities. One essential aspect of risk management is securing public liability insurance. This comprehensive guide will walk you through the important points of public liability insurance and provide you with a clear understanding of its significance.

    Best Public Liability Insurance for Small Business Image
    Photo from ilearnlot.com

    Table of Contents

    1. What is Public Liability Insurance?
    2. Why is Public Liability Insurance Important?
    3. Who Needs Public Liability Insurance?
    4. What Does Public Liability Insurance Cover?
    5. How Much Public Liability Insurance Do You Need?
    6. Finding the Right Public Liability Insurance Provider
    7. Tips for Making a Claim
    8. Additional Considerations
    9. Best Public Liability Insurance for Small Business
    10. Conclusion

    1. What is Public Liability Insurance?

    This insurance is a form of business insurance that safeguards your company against third-party liability claims. It offers financial protection in case someone sues your business for personal injury, property damage, or other related incidents that arise from your business activities. Examples of such incidents can include slip and fall accidents on your business premises or damage caused by your products or services.

    2. Why is Public Liability Insurance Important?

    Public liability insurance is important for several reasons:

    • Legal Protection: It protects your business assets by covering legal expenses and potential compensation costs if you are found liable in a lawsuit. These costs can be substantial, and having insurance in place can help alleviate the financial burden.
    • Financial Security: Being sued can have a significant impact on your business’s financial stability. With this insurance, you can have peace of mind knowing that your business is protected against unexpected expenses.
    • Reputation Management: When your business is covered by its insurance, you demonstrate to your clients and customers that you take their safety and interests seriously. It can help maintain your reputation and attract potential customers who prioritize working with insured businesses.
    • Contractual Requirements: Many clients and customers require proof of public liability insurance before entering into contracts or agreements. Having this coverage can give you a competitive advantage and increase your chances of securing valuable business opportunities.

    3. Who Needs Public Liability Insurance?

    This is essential for various types of small businesses, including but not limited to:

    • Retail Shops and Restaurants: With foot traffic and potential customer interactions, these businesses face a higher risk of accidents and injuries.
    • Contractors and Tradespeople: Professionals working on clients’ properties or handling tools and equipment can inadvertently cause property damage or personal injury.
    • Event Organizers: Planning and hosting events involve managing numerous variables, including the safety of attendees and the venue.
    • Freelancers and Consultants: Even as an individual working independently, you may be held liable for any damage or injury that occurs as a result of your professional advice or services.

    4. What Does Public Liability Insurance Cover?

    Public liability insurance typically covers the following:

    • Legal Expenses: This includes costs associated with defending against a claim or lawsuit, such as attorney fees, court costs, and settlement or judgment expenses.
    • Compensation Payments: If you are found liable for third-party injury or damage, the insurance can cover the cost of compensation. This can include medical expenses, loss of income, and pain and suffering.
    • Property Damage: If your business activities cause damage to someone else’s property, this insurance can help cover the repair or replacement costs.
    • Advertising Liability: In some cases, insurance may also cover claims related to defamation, libel, or slander arising from your business’s advertising activities.

    5. How Much Public Liability Insurance Do You Need?

    The appropriate amount of public liability insurance varies depending on factors such as your business type, size, and the potential risks involved. It’s advisable to assess your business needs carefully and consult with an insurance professional who can guide you in determining the right coverage amount. Consider factors such as the nature of your operations, the number of customers or clients you interact with, and the potential severity of injuries or damages that could occur.

    6. Finding the Right Public Liability Insurance Provider

    When searching for a public liability insurance provider, consider the following:

    • Research Different Insurance Companies: Explore and compare policies, reputation, and customer reviews of different insurance companies. Look for providers with experience in insuring small businesses in your industry.
    • Seek Recommendations: Reach out to other small business owners in your industry and ask for their recommendations. Personal experiences and insights can help you make an informed decision.
    • Policy Exclusions and Coverage Limits: Review the policy exclusions to understand what is not covered. Take note of coverage limits to ensure they are sufficient for potential claims.
    • Additional Benefits: Some insurance providers may offer additional benefits or perks, such as legal helplines or risk management resources. Assess these additional benefits to see if they align with your business needs.
    • Obtain Multiple Quotes: To ensure you’re getting the best coverage at a competitive price, obtain quotes from multiple insurance providers. This can help you compare costs and coverage options before making a final decision.

    7. Tips for Making a Claim

    If you need to claim on your public liability insurance policy, follow these tips:

    • Notify Your Insurance Provider: Contact your insurance provider as soon as possible after an incident occurs. Promptly reporting the incident ensures that the claims process can begin smoothly and efficiently.
    • Gather Relevant Details: Collect all relevant details related to the incident, such as photographs, witness statements, and any supporting documents. These pieces of evidence can strengthen your claim and help substantiate your case.
    • Keep Records of Expenses: If you incur any expenses related to the incident, such as medical bills or temporary repairs, keep thorough records to include in your claim. Proper documentation can support your reimbursement requests.
    • Cooperate Fully: Throughout the claims process, cooperate fully with your insurer and provide any additional information they may require. Promptly respond to any requests for documentation, statements, or other relevant information.

    8. Additional Considerations

    • Regular Policy Review: Review your insurance policy regularly to ensure it remains adequate for your business needs. As your business grows or evolves, you may need to adjust your coverage to adequately protect against new risks and liabilities.
    • Other Insurance Types: This insurance is essential, but it may not cover all aspects of your business. Depending on your industry and services, you may need additional insurance types such as professional indemnity insurance or product liability insurance to address specific risks.
    • Employee Injuries: It’s important to note that public liability insurance typically does not cover employee injuries, which often fall under the purview of workers’ compensation insurance. Ensure you have the necessary coverage in place to protect your employees in case of work-related injuries or illnesses.

    9. Best Public Liability Insurance for Small Business

    When it comes to finding the best public liability insurance for your small business, there are several reputable providers that you can consider. Keep in mind that the best option for your business may depend on factors such as your industry, specific needs, and budget. Here are a few insurance companies known for offering reliable coverage to small businesses: #BestPublicLiabilityInsuranceforSmallBusiness

    1. Hiscox: Hiscox is a well-established insurance provider that offers a range of coverage options for small businesses. They have a strong reputation for providing comprehensive PL insurance tailored to the needs of different industries.
    2. Chubb: Chubb is another reputable insurance company that offers PL insurance for small businesses. They have a global presence and are known for their comprehensive coverage options, flexibility, and financial stability.
    3. AXA: AXA is a widely recognized insurance provider that offers PL insurance for small businesses. They offer customizable coverage options and have a user-friendly online platform for obtaining quotes and managing policies.
    4. Allianz: Allianz is a global insurance company that offers PL insurance specifically designed for small businesses. They provide flexible coverage options and have a straightforward claims process.

    Remember to carefully assess your business needs, and compare policy terms, coverage limits, exclusions, and pricing. It’s also a good idea to seek advice from an insurance professional who can guide you in selecting the best public liability insurance for your small business.

    Conclusion

    Public liability insurance is a vital safeguard for small businesses, offering protection against potential liabilities and financial risks. By understanding the basics of public liability insurance and finding the right coverage for your business, you can focus on growing your venture with peace of mind.

    Remember to consult with insurance professionals or experts to ensure you choose the most appropriate policy for your specific business requirements. Investing in public liability insurance demonstrates your commitment to the well-being of those who interact with your business, and it can provide you with the necessary support to navigate unexpected challenges and protect your financial interests.

  • 30 Difference between Public vs Private vs Investment Banking

    30 Difference between Public vs Private vs Investment Banking

    What is the Difference between Public vs Private vs Investment Banking? Public banking refers to government-owned banks serving the general public with basic financial services. Private banking offers tailored financial solutions for high-net-worth individuals, including wealth management and personalized advice. Investment banking provides financial advisory, capital raising, and strategic services for corporations and institutional clients. It facilitates mergers and acquisitions, underwrites securities, and offers trading and brokerage services.

    Difference between Public vs Private vs Investment Banking – Definition, Comparison Chart, Examples, and Key Points.

    Public vs Private vs Investment Banking in Short:

    • Public banking refers to financial institutions that are government-owned and provide banking services to the general public.
    • Private banking is tailored towards high-net-worth individuals and offers personalized financial services, including wealth management and investment advice.
    • Investment banking primarily focuses on providing financial advisory and capital-raising services to corporations, governments, and other institutional clients.

    These are the basic differences between public, private, and investment banking in a nutshell.

    30 Difference between Public vs Private vs Investment Banking Image
    Photo by Tirachard Kumtanom from Pexels

    Definition of Public Banking

    Public banking refers to the operation and management of financial institutions that are owned and controlled by the government or public entities. These banks offer a range of financial services to the general public, including deposit accounts, loans, mortgages, and other banking facilities. The primary objective of public banking is to promote economic stability, and financial inclusion, and support the overall development of the community.

    Definition of Private Banking

    Private banking is a specialized banking service primarily offered to high-net-worth individuals, affluent families, and select institutions. It provides personalized and exclusive financial solutions tailored to the specific needs of clients. Private banks typically offer services such as wealth management, investment advisory, estate planning, tax optimization, and personalized banking facilities. Client confidentiality and personalized attention are key features of private banking.

    Definition of Investment Banking

    Investment banking refers to the financial activities and services provided by specialized banks or divisions within larger financial institutions. These banks primarily focus on offering financial advisory services, facilitating mergers and acquisitions, underwriting securities offerings, and providing capital-raising solutions to corporations, governments, and institutional clients. Investment banks play a crucial role in facilitating complex financial transactions, managing risks, and providing strategic guidance on various financial matters. They often deal with underwriting securities, trading, research, and sales.

    10 Comparison Chart for the Difference between Public vs Private and Investment Banking

    Sure! Here is an expanded comparison chart highlighting the difference between Public vs Private and Investment Banking in ten different aspects:

    AspectPublic BankingPrivate BankingInvestment Banking
    OwnershipGovernment-owned or controlledPrivately owned and operatedPrivately owned and operated
    Target AudienceGeneral publicHigh-net-worth individuals, affluent familiesCorporations, governments, institutional clients
    Services OfferedBasic financial servicesTailored financial solutions, wealth managementFinancial advisory, capital-raising, strategic services
    Customer RelationsMore transactional, less personalizedPersonalized attention, client confidentialityTransactional, relationship-based
    FocusEconomic stability, financial inclusionClient needs and wealth managementThe generally lower risk profile
    RegulationGoverned by banking regulations and policiesRegulated by financial authoritiesSubject to financial regulations and compliance
    Risk ExposureAdvisory fees, underwriting fees, trading, and brokerage incomeDepends on individual client investment strategiesExposure to market volatility, regulatory risks
    Income SourcesInterest income, fees, government supportFees, investment returns, commission-basedFacilitates economic growth, capital formation, and business expansion
    Job RolesBank tellers, customer service agentsRelationship managers, investment advisorsInvestment bankers, traders, analysts, corporate finance professionals
    Social ImpactPromotes financial inclusion and stabilitySupports the wealth management of affluent individualsFacilitates economic growth, capital formation, and business expansion

    This comparison chart summarizes the key differences between public, private, and investment banking across various aspects. Each type of banking serves distinct purposes and targets different audiences, offering unique services and benefits.

    10 Examples of Differences Between Public vs Private vs Investment Banking

    Certainly! Here are 10 examples that illustrate the differences between Public, Private, and Investment Banking:

    • Ownership: Public banking is government-owned or controlled, while private banking is privately owned and operated. Investment banking is also privately owned and operated.
    • Target Audience: Public banking serves the general public, private banking caters to high-net-worth individuals and affluent families, and investment banking focuses on corporations, governments, and institutional clients.
    • Services Offered: Public banking provides basic financial services to the public, private banking offers tailored financial solutions and wealth management services, and investment banking provides financial advisory, capital-raising, and strategic services.
    • Customer Relations: Public banking tends to have more transactional relationships with customers, while private banking provides personalized attention and client confidentiality. Investment banking relationships are transactional and relationship-based.
    • Focus: Public banking aims to promote economic stability and financial inclusion, private banking focuses on client needs and wealth management, and investment banking specializes in corporate transactions such as mergers and acquisitions.
    • Regulation: Public banks are governed by banking regulations and policies, while private banks are regulated by financial authorities. Investment banks are subject to financial regulations and compliance.
    • Risk Exposure: Public banking generally has a lower risk profile, while risk exposure in private banking depends on individual client investment strategies. Investment banking is exposed to market volatility and regulatory risks.

    Additionally examples

    • Income Sources: Public banks generate income from interest, fees, and government support. Private banks generate income from fees, investment returns, and commission-based services. Investment banks earn income from advisory fees, underwriting fees, and trading and brokerage activities.
    • Job Roles: Public banking employs bank tellers and customer service agents, private banking has relationship managers and investment advisors, and investment banking includes job roles such as investment bankers, traders, analysts, and corporate finance professionals.
    • Social Impact: Public banking promotes financial inclusion and stability. Private banking supports the wealth management of affluent individuals. Investment banking facilitates economic growth, capital formation, and business expansion.

    These examples highlight the distinctions between public, private, and investment banking in terms of ownership, target audience, services offered, customer relations, focus, regulation, risk exposure, income sources, job roles, and social impact.

    10 Main key points Differences between Public vs Private vs Investment Banking

    Here are the key differences between Public vs Private vs Investment Banking:

    Certainly! Here are the 10 main key points differentiating Public, Private, and Investment Banking:

    • Ownership:
      • Public Banking: Owned and operated by the government or state authorities.
      • Private Banking: Owned and operated by individuals, partnerships, or privately-held companies.
      • Investment Banking: Owned and operated by financial institutions, offering specialized financial services.
    • Clientele:
      • Public Banking: Serves the general public, including individuals and small businesses.
      • Private Banking: Caters to high-net-worth individuals, providing customized financial services.
      • Investment Banking: Primarily works with corporations, institutions, and high-profile clients.
    • Services Offered:
      • Public Banking: Focuses on core banking services such as savings accounts, loans, and mortgages.
      • Private Banking: Provides personalized wealth management, investment advisory, and estate planning services.
      • Investment Banking: Offers services like underwriting, mergers and acquisitions, capital raising, and financial advisory.
    • Investment Activities:
      • Public Banking: Generally limited to traditional banking activities, with a conservative investment approach.
      • Private Banking: Offers a wide range of investment opportunities, including alternative investments and hedge funds.
      • Investment Banking: Engages in sophisticated investment strategies, such as trading stocks, bonds, derivatives, and commodities.
    • Client Relationships:
      • Public Banking: Often transactional, with limited personalized attention.
      • Private Banking: Focuses on building strong, long-term relationships with clients, providing dedicated relationship managers.
      • Investment Banking: Combination of transactional and relationship-based interactions, depending on the nature of the engagement.
    • Regulatory Framework:
      • Public Banking: Subject to government regulations and oversight.
      • Private Banking: Regulated by financial authorities and regulatory bodies.
      • Investment Banking: Highly regulated, complying with various financial laws and regulations.
    • Risk Exposure:
      • Public Banking: Generally has a conservative risk appetite with fewer risks involved.
      • Private Banking: Risk profiles differ depending on clients’ investment preferences and risk tolerance.
      • Investment Banking: Involves higher risks due to complex financial transactions, market volatility, and regulatory compliance.

    Besides keys

    • Focus and Expertise:
      • Public Banking: Primarily focused on retail banking services and promoting financial inclusion.
      • Private Banking: Concentrates on individualized wealth management and tailored financial solutions.
      • Investment Banking: Specializes in corporate finance, capital markets, and advisory services for large-scale transactions.
    • Income Sources:
      • Public Banking: Generates income through interest on loans, fees, and government support.
      • Private Banking: Earns income from fees, commissions, and returns on investments made on behalf of clients.
      • Investment Banking: Main sources of revenue include advisory fees, underwriting fees, and trading activities.
    • Social Impact:
      • Public Banking: Aims to provide accessible banking services to the general public, promoting financial stability and inclusion.
      • Private Banking: Generally benefits high-net-worth individuals, contributing to wealth management and preservation.
      • Investment Banking: Plays a crucial role in facilitating capital raising, fostering economic growth, and supporting corporate transactions.

    These key points outline the core differences between Public, Private, and Investment Banking, covering ownership, clientele, services offered, investment activities, client relationships, regulatory framework, risk exposure, focus and expertise, income sources, and social impact.

    Bottom line

    Public banking refers to government-owned banks that serve the general public with basic financial services. Private banking offers tailored financial solutions for high-net-worth individuals, including wealth management and personalized advice. Investment banking provides financial advisory, capital raising, and strategic services for corporations and institutional clients. Public banking promotes economic stability and financial inclusion, while private banking focuses on client needs and wealth management. Investment banking facilitates corporate transactions such as mergers and acquisitions.

    Public banking is owned by the government, private banking is privately owned, and investment banking is owned by financial institutions. Also, Public banking serves the general public, private banking caters to high-net-worth individuals, and investment banking targets corporations, governments, and institutional clients. Public banking offers basic financial services, private banking provides personalized financial solutions, and investment banking offers financial advisory and capital-raising services.

  • Difference between Public VS Business Administration

    Difference between Public VS Business Administration

    What is the difference between public administration VS business administration? With the increasing development of the nation’s market economy, the status of public management and business management has been significantly improved, and the two different types of management share the development trend of economic strategy.

    Here are the articles to explain, Analysis of the difference between public administration VS business administration

    The author of this article puts forward the differences and connections between public management VS business management by analyzing. The concepts and concepts of public management and business management respectively.

    Main Keywords: public administration; business administration; difference and connection

    Both public management VS business administration belong to the scope of management disciplines and have the common characteristics of management science. Which can realize the rational allocation of resources through planning, organization, coordination, and other means. However, there are essential differences between public management and business management. Understanding the differences and connections between public administration VS business administration can effectively prevent the dislocation of the management subject and object of the two.

    Analysis of the concept of public management

    The concept of public management stood put forward in the 1970s. It is also the inevitable result of the development of public administration, and it is also the dilemma and challenge that traditional public administration faces. Public management is the extension and transformation of public administration. There is no substantial difference between the two, but public management pays more attention to social fairness and equality.

    The emergence of public management is a function of public organizations whose main purpose is to realize the public interest. Public management includes many contents, mainly administrative management, urban management, development management, etc. It is an important branch of modern management disciplines and has broad development prospects. The core of public management is the government, which enhances the government’s management capabilities through policies, economics, and laws, improves the government’s management performance and service quality, and promotes the maximization of public interests.

    Public management has diversified subjects, which can promote the further development of social public affairs and promote the maximization of social public interests. Realizing the responsibility of public management by regulating and controlling public resources, and establishing public management system and effective methods is the urgent task of innovation.

    Analysis of the concept of business management

    Business Administration is a discipline that studies the basic theories and general methods of economic management of industrial and commercial enterprises. It mainly includes two aspects, namely formulating enterprise development strategies and managing internal behaviors of enterprises. Business administration has strong applicability and is an indispensable administrative department of enterprises. The professional requirements of business administration are relatively high.

    Through the application of management science, economics, and other knowledge, and the implementation of enterprise management and business strategy formulation through modern management methods, the survival and smooth development of enterprises stand guaranteed. As an important branch under the direction of management, stabilizing the survival of enterprises and promoting enterprise development are important goals of business management. Business management involves a wide range of content, and strong professionalism, and requires high theoretical knowledge and comprehensive ability. Doing a good job in business management is an important foundation for the smooth development of enterprises.

    The difference between public administration and business administration

    (1) Public administration and business administration involve different fields

    The fields involved in public management and business management are quite different. First of all, public management is mainly responsible for the public domain, and the content involved is a public issue. Business management involves the private sector and is a competitive business enterprise based on the enterprise. The public domain mainly refers to government agencies and public institutions, etc., among which public issues refer to social issues that are widely affected by public nature in the work of members of society, are inseparable, and are directly related to public interests.

    Public issues generally involve a wide range of complex issues, including environmental issues, traffic safety, food hygiene, etc. Public issues have a greater impact, not only on a single individual but more on a team or the majority of people. Secondly, the private sphere involved in business management is opposite to the public sphere. Business management is the management of profit-making organizations, that is, business management, and its basic nature is different. Business management pays more attention to the allocation of enterprise resources and the optimization of production factors to obtain maximum benefits.

    (2) The resource allocation of public management and business management is different

    The main body of public management is the government department. To realize the effective implementation of public management. It needs to be based on the control of public resources, including the following three aspects:

    • First, is public power. Public power is the binding force and coercive force of the government to realize public management. Which can realize the management of the legal qualification to enjoy resources in social public affairs. Public power belongs to all members of society, not to private individuals. Its function is to achieve public interests, and it has the characteristics of strong authority, strong rigidity, and no constraints.
    • Second, government resources. Government resources include the manpower, material, and financial resources it possesses, and the most important thing is the control of financial resources. Government financial resources are public property and the basis for the government to engage in public affairs.
    • Finally, natural resources. Various natural resources also belong to government resources, including land, mines, etc. The main body of business management is non-public resources, and the power it possesses is a private right, which is also a kind of strength of an enterprise organization.

    An enterprise is a basic unit that can engage in economic activities such as commodity production and circulation. It realizes organizational goals through business management, and its private rights include binding force and property rights. The private right of an enterprise is enjoyed by individuals and is a non-public resource. The sources of material resources and human resources of business management are different from public management. They do not support by the government but are obtained from investment reports. Therefore, business management faces market competition and pays more attention to the survival and development of enterprises.

    (3) The goals of public administration and business administration are different

    Public management with the government as the main body mainly represents the public interests of society. Its essence is whether the public interests are good or bad, and its evaluation criteria are also based on the interests and needs of the majority of people. Public management pays more attention to social fairness and social justice. Its goal is to maintain public interests to the greatest extent and then realize the individualized distribution of public interests in a fair and just manner to promote social welfare.

    Business management represents the management of profit-making organizations. Its goal is to maximize the interests of the private sector. Its main body is a broker. It takes market rules as its basic criterion and control by market norms. Business management is based on efficiency and realizes the expansion of private interests. Although industrial and commercial enterprises also contribute to national finance, their ultimate goal is to realize their interests.

    (4) The operating mechanisms and methods of public management and business management are different

    Public management manages public affairs through the use of public power. The essence of its operating mechanism is the operating mechanism of public power, and its basic basis is laws and regulations. Therefore, public management is a legalized management, including two aspects:

    • First, Administer according to the law, manage public affairs according to the power and provisions of the law, divide responsibilities, and strive to follow laws and regulations in every link of the management process.
    • Second, legal supervision. The whole process of public management needs to be carried out under the internal and external supervision of laws and regulations. Business management operates by the laws of the market.

    Although the market economy also needs to follow legal requirements, such norms are only external. There are still hidden constraints in the laws of the market economy to maintain the normal operation of the market.

    The relationship between public administration and business administration

    Public management VS business administration belongs to important branches of management science, and they are different. But also have a certain relationship, and the relationship between the two is dialectical and unified. Both public management VS business management is based on the basic theories, methods, and knowledge of management, and realize management through means such as organization, control, leadership, decision-making, execution, and supervision.

    In the management process, although the management objects are different and the operating mechanism is different. The problems encountered are the same, such as organizational problems, supervision problems, implementation problems, etc. The attention and exploration of these problems constitute the gap between business management VS public management. The common problem is the biggest commonality between the two.

    Conclusion

    To sum up, public management VS business administration belongs to the category of management. There are differences between the two in terms of management essence, management field, resource allocation, management objectives, and operating mechanism. There are also commonalities in the problem. Mastering the difference and connection between public management and business management is conducive to the long-term development of public and private interests.

    Analysis of the difference between public administration VS business administration Image
    Analysis of the difference between public administration VS business administration; Photo by Gabrielle Henderson on Unsplash.
  • Financial Management of Public Sector Institutions

    Financial Management of Public Sector Institutions

    Influence of Information Technology on the Financial Management of Public Sector Institutions. As we all know, information technology has existed integrated into the financial management of institutions. Especially the application of computerized accounting in institutions. Which has improved the level of financial management and work efficiency of institutions. And adapted to the requirements of the reform of the financial system of modern institutions. Therefore, strengthening the analysis of the impact of information technology on the financial management of public institutions is an important part of improving the level of financial management informatization in institutions.

    Here are the articles to explain, the Overview of Financial Management of Public Sector Institutions with Influence of Information Technology!

    The financial management of public sector institutions exists generated based on the financial activities. And financial relations exist in the process of performing the functions of public institutions. It is an economic management work for public institutions to organize financial activities and deal with financial relations. content. Analyzing the management of financial capital input and output activities by Chinese institutions has the following characteristics. The content of financial management is more complex, the methods of financial management are diversified, and the requirements for financial workers are higher.

    The characteristics of financial management of public sector institutions are closely related to the characteristics of institutions themselves. It mainly has the following characteristics: First, the current funding forms of institutions mainly include full appropriation, differential appropriation, self-payment, and enterprise management. Fund providers do not require the right to benefit from the funds invested; second, there is generally no problem of sale, transfer, redemption, or liquidation of public institutions, and fund providers will not share the residual value of the unit; third, public institutions generally do not directly Create material wealth, not for profit.

    The role of information technology in promoting financial management of public institutions

    With the continuous development of information technology, the traditional decentralized financial accounting model can no longer meet the requirements of the financial management of the public sector or modern institutions, for this reason, a modern centralized financial management model based on information technology has emerged. It can say that information technology plays an important role in promoting the modern financial centralized management mode, and its performance is as follows:

    It is beneficial to improve the efficiency of accounting work.

    Due to the application of information technology, the unified management of financial information of institutions can realize. And the accounting data within the unit can upload to the information management platform in a timely and fast manner. Avoiding the separate accounting of different departments in the past and then a unified summary. Limitations, and through information technology, the cost management required by the management of institutions has also existed realized. At the same time, through centralized accounting, the financial management department can keep abreast of the use of funds of public institutions at any time. Thereby realizing dynamic supervision of the financial activities of public institutions.

    Conducive to strengthening accounting methods.

    Traditional financial accounting mainly relies on manual operation. Even if people use electronic calculators to calculate accounting data, there will inevitably be errors in calculation. After the implementation of information technology, the accounting methods of financial management are more scientific and perfect. For example, many advanced accounting methods exist applied to it. Which realizes the comprehensive management of financial accounting. Thus realizing the accuracy and integrity of accounting data. Also, like to learn about the Impact of Big Data Analysis on CPA Audits.

    Conducive to play the accounting supervision function.

    Through the construction of financial business informatization, all financial activities of public institutions can incorporate into an effective supervision system. For example, the establishment of the central treasury payment system has strengthened the financial supervision of public institutions’ financial expenditures. The treasury payment institutions can rely on the network platform to achieve financial spending supervision of public institutions has effectively prevented various corrupt behaviors of public institutions. For example, through the fiscal non-tax income information system, the charges of public institutions will be directly credited to the special fiscal non-tax account, avoiding the phenomenon of public institutions embezzling special funds.

    The impact of information technology on the financial management of public institutions

    Impact on budget preparation management

    Public institutions implement a budget management system. This is what we often call the “zero-based budget” management model. That is, all financial activities of public institutions stand included in the corresponding budget preparation. And all financial management activities of public institutions must prepare by the content of the budget. conduct. Because public institutions have clear public management functions, when compiling financial budgets, institutions need to prepare financial budgets. That can accurately reflect the actual situation of the institution according to the company’s situation. Such as its personnel establishment, asset management, and project development.

    Preparing the financial budget for the next year to ensure that all economic activities of the institution in the next year have sufficient financial support. The accuracy of financial budget preparation is based on the understanding and analysis of the information of all economic activities of the institution. If an institution wants to fully grasp the financial information of the unit. It must use modern information technology to realize the realization of the financial information of the unit. Centralized processing and analysis.

    Impact on financial decision-making and forecast management

    To improve the use efficiency of public financial funds and improve the scientificity and accuracy of financial decision-making, institutions must start from the financial management model and establish a sound financial decision-making and forecasting mechanism. First of all, institutions must use computer automation processing technology, according to mature and scientific mathematical models, combined with the financial data of the unit, to carry out careful analysis and processing, to improve the accuracy of financial information of institutions, and provide financial managers of institutions.

    Provide necessary financial information; secondly, institutions should use the financial information management platform to conduct a comprehensive analysis of the relevant financial information, especially the comparison between the unit’s financial budget and the previous year’s financial budget implementation, and use this as the unit’s financial budget preparation. work provides reference.

    Impact on financial accounting management

    The transformation of the financial management mode of public institutions has changed its financial accounting method from post-event accounting to pre-event and in-event accounting, the original financial accounting object has changed from fixed accounting to dynamic accounting, and the traditional fixed-time financial disclosure mode has been changed. Real-time transmission of financial accounting, indicator execution, and indicator balance. And other information to the financial department greatly enriches the content of financial information. Increases the transparency of financial information of institutions, and improves the use value of financial information.

    Impact on fund payment management

    Supported by information technology, China has implemented a centralized treasury payment system. Which has changed the “real allocation model” in which the financial department directly allocated financial funds to the bank accounts of public institutions. treasury. The public institution applies when it needs to purchase goods or pay for labor services. After being reviewed by the central treasury payment institution. The funds exist paid directly from the centralized payment account of the commercial bank to the beneficiary. And then the centralized payment account of the commercial bank stands settled with the People’s Bank of China treasury.

    The implementation of the central treasury payment system has improved the efficiency of the use of funds in public institutions, reduced the operating costs of financial funds, prevented the embezzlement, misappropriation, and withholding of financial funds, and effectively supervised the financial accounting authority of public institutions.

    To sum up, information technology not only affects the financial accounting management mode. And the financial decision-making mechanism of public institutions. But also actively promotes the reform of the financial management systems of public institutions. Therefore, we must vigorously promote the construction of financial management information. And strive to improve the financial management level of institutions.

    Influence of Information Technology on the Financial Management of Public Sector Institutions Image
    Influence of Information Technology on the Financial Management of Public Sector Institutions; Photo by Sebastien LE DEROUT on Unsplash.
  • Public Libraries open near me in Society with their Role

    Public Libraries open near me in Society with their Role

    Public Libraries open near me in Society, for education, study, dream story, comedy, etc. What is public libraries role in our daily life; A public library is a non-profit library, which maintain for public use and funded by the government or public sources. Unlike other libraries, public library satisfies general public information needs by providing all kinds of knowledge; and information available to all segments of the community regardless of race, nationality, age, gender, religion, language, disability, economic, and employment status.

    Here is the article to explain, Public Libraries open near me in Society with What is the Role of theirs?

    It may also provide other services to their communities such as storytelling for children, after-school programs, language learning, seminars, workshops, and other community services. Public libraries stood initiated back in ancient times. They existed known and used by Greeks, Romans, North Africa, and the Middle East. However, they did not arise in Europe and America until the 18th and 19th centuries.

    In USA and Europe, public libraries started with a donation from many private philanthropists like Andrew Carnegie and Benjamin Franklin. Like other philanthropists, both Benjamin Franklin and Andrew Carnegie realized that books, and the knowledge they provide, should not be for just richness; but for serving the public and for anyone who wanted to learn. Because of this belief, they made books and money available to the general public through their philanthropy.

    Throughout history, library collections have been changed and developed. Nowadays, besides printed books and traditional materials, public libraries offer a wide range of other media and modern technologies like videos, audiobooks, e-books, DVDs, and others. Similarly, the roles and missions of the public libraries have been shifted from recreational reading to acting as active educational, economic, and social agents.

    This article seeks to offer a literature review on the role of public libraries in society. Take the style of the literature review and the words from the article (children literacy); A survey reveals that show, found, assume, According to Lyman (1977), Weibel (1992) looked at the role of the library in promoting literacy, Spink (1989) notes; Other studies have concentrated on, states, points out, belief.

    Role of public libraries;

    Public library plays an important role in people’s lives as a source of accessing information; and a place for knowledge creation. It has shown that public libraries are important informational, educational, cultural, and social institutions.

    Public library and Education;

    One of the public libraries’ significant and fundamental roles in education. Public libraries provide books and other materials for people to read and use, also open near me in Society or Public Places. These materials are educational and lead to self-improvement and develop basic literacy skills.

    Public Libraries have always been seen as educational resources for all people. The educative role of public libraries has expanded to include supporting both formal and informal education.

    Public library and literacy;

    Literacy is the ability to read and write. In libraries culture, this concept expands to include the knowledge or education in one or several fields required to develop individual and communities skills.

    Learning today is not a luxury limited only to selected groups, but it is essential for survival. Expansion of literacy needs reading and writing material.

    The public library is the local center for providing a wealth of information through learning facilities; and, materials to support literacy to the general public. Literacy stands also achieved by providing literacy programs and activities for different groups and ages.

    Public libraries continue to play a major role in fostering literacy in communities and societies, particularly among; those groups of the populations that need special assistance in developing literacy skills, such as preschool and elementary school children.

    Children’s literacy is one of the educative roles of public libraries. Public libraries are concerned with providing children and exposing them to high-quality reading materials; and rich language experiences during the crucial preschool and elementary school years.

    Pennsylvania public libraries are among the libraries; which keen on enhancing the children’s literacy skills by proving their high-quality materials; and involving them in summer reading programs, story hours, arts and crafts activities.

    A study existed done in Pennsylvania public libraries using qualitative and quantitative methods to examine how library preschool and summer reading programs contribute to children’s reading skills.

    Surveys existed sent to every third library outlet listed in the directory of Pennsylvania libraries.

    The study reveals that children who participate in summer reading programs gain more literacy skills. They also found that preschool and summer reading programs encourage children to spend more time with books. Moreover, Observations and interviews show that library programs encourage parents to play greater roles in their children’s literacy development.

    Public library and Non-formal Education;

    Non-formal education is an unsystematic form of learning and educational activity that occurs outside of traditional organizations or institutions. Unlike formal education, non-formal education is a non-structured educational system. Examples of non-formal education include after-school programs, community-based organizations, museums, libraries, or at home. The aims of both formal and non-formal education are similar but they are different in approach. (Abraham, 2010). Both learning focus on gaining knowledge and skills however, the way of gaining learning is different.

    Non-formal educational practices reinforce due to the challenges of the modern information society.

    Abraham (2010) states that rural people suffer from a lack of proper education. He points out that formal education is time-bound, rigid, and difficult for such people; therefore, non-formal education is much suitable for rural people to satisfy their needs and fit their environmental conditions.

    He describes the public library as a “welfare center, which provides useful services to the community by fostering education, promoting culture, recreation, and dissemination of information to all sections of the society”. Abraham (2010) looked at the public libraries as the most appropriate centers through which non-formal education can achieve. He found that some public libraries in rural areas in India (Kerala) play an important role in supporting non-formal education by organizing night schools, constructive discussions, seminars, and symposia to fight illiteracy and proliferation of reading habits.

    A study was conducted in one of the Kerala districts (Abraham, 2010) to gather an overview of the role of public libraries in promoting non-formal education. Questioners existed distributed among 20 women laborers. It lived found that 30% of them could continue their education and are attempting to achieve minimum qualifications through utilizing rural libraries in their home areas. 60% could read and write and 10% stopped their education due to various personnel reasons.

    Public library and Life long learning;

    Lifelong learning is the process of continuous and ongoing learning throughout a person’s life to enhance continuous development and improvement of the individual’s knowledge and skills. Life-long learning cannot achieve without literacy because reading and writing are essential for learning.

    Due to the complex and rapid change environment, people need to acquire a variety of skills and knowledge irrespective of their age, social, political, or economic status.

    Wijetunge (2000) states that public libraries contribute to lifelong learning by supporting the learners to identify and locate the reading materials relevant to the needs of the community.

    Karunawathie (1998) gave an example of how the Negombo Public Library has contributed to the community in which it exists. The public library has assisted the fishing community in Negombo in changing the process of their fishing technology by providing the community with good and rich materials related to the finishing industry.

    Public Libraries open near me in Society with their Role Image
    Public Libraries open near me in Society with their Role; Image by Daniel Messer from Pixabay.

    References; The Role of Public Libraries in Society. Retrieved from https://www.ukessays.com/essays/education/role-of-public-libraries-in-society-education-essay.php?vref=1

  • Difference between Private Company and Public Company

    Difference between Private Company and Public Company

    Private Company and Public Company Difference; A private company isn’t like a public company. The private company runs in the same way as a public company runs. A public company refers to a company that lists on a recognized stock exchange and its securities trade publicly. Also, A private company is one that not lists on a stock exchange and its securities hold privately by its members.

    Difference or distinction between Private Company and Public Company in PPT presentation.

    The Differences of Company content below are the following and presentation;

    Which means:

    A public company alludes to a company that records on a perceived stock trade and its protections are exchanged publicly. Also, a private company is one that not records a stock trade and its protections are held privately by its individuals.

    Name of company end word:

    As well as, a public company needs to exclude “private” in its name. However, for a private company, it is required to compose the words “private restricted” toward the finish of its name.

    Number of Members for Company:

    There should be at any rate seven individuals to begin a public company. Yet, despite what might expect, the private company can be begun with at least two individuals. There is no roof on the greatest number of individuals in a public company. Also, a private company can have a limit of 50 individuals, including its at various times representatives.

    Number of directors in Company:

    A public company ought to have at any rate three chiefs; Also, a private company can have at least 2 chiefs.

    Majority:

    It is obligatory to assemble a legal general conference of individuals, on account of a public company. The presence of two individuals is a sufficient majority for the regular gathering on account of a private company. Then again, there should be in any event five individuals, by and by present at the yearly regular gathering for comprising the essential majority if there should be an occurrence of a public company.

    Capital for Company:

    As well as, a public company should have a settled up capital of rupees five lakh. Alternately, a private company should have a settled up capital of rupees one lakh.

    Beginning of Company Business:

    To begin a business, the public company needs a testament to the beginning of business after it is fused. As well as, a private company can begin its business soon after accepting an endorsement of the fuse.

    Articles of Association:

    As well as, a public company can receive the model Articles of Association given in the Companies Act. Also, a private company should get ready and document its own Articles of Association.

    The adaptability of offers in the financial exchange:

    Also, the adaptability of portions of a private company totally limited. Unexpectedly, the investors of a public company can openly move their offers.

    Limitations on the Appointment of Directors:

    Ahead of a public company will record with the recorder’s agreement to go about thusly. He/she will sign the reminder and go into an agreement for capability shares. He/she can’t cast a ballot or participate in the conversation on an agreement where he/she intrigue. 66% of the overseers of a public company should resign by a pivot. These limitations don’t have any significant bearing on a private company.

    Difference or distinction between Private Company and Public Company Image
    Difference or distinction between Private Company and Public Company; Image from Own.
  • Introduction to Public Finance, Expenditure, Revenue, and Debt

    Introduction to Public Finance, Expenditure, Revenue, and Debt

    What does Public Finance Management mean? Introduction to Public Finance, Expenditure, Revenue, and Debt (In Hindi); Collection of sufficient resources from the economy in an appropriate manner along with allocating and use of these resources efficiently and effectively constitute good financial management. Resource generation, resource allocation, and expenditure management (resource utilization) are the essential components of a public financial management system – By Wikipedia.

    The Concept of Public Finance Management explains with its Expenditure, Revenue, and Debt.

    The following subdivisions form the subject matter of public finance.

    Step by step explains each one; Public expenditure, Public revenue, Public debt, Financial administration, and Federal finance.

    Public finance is the management of a country’s revenue, expenditures, and debt load through various government and quasi-government institutions. This guide provides an overview of how public finances manage; what the various components of it are, and how to easily understand what all the numbers mean. A country’s financial position can evaluate in much the same way as a business’ financial statements.

    Public Finance:

    The study of government’s role in the public finance economy is, it is the branch of economics; which evaluates the government expenditure of government revenue and government authorities, and one or the other adjustment to achieve desirable effects and avoid undesirable people.

    The federal government helps prevent market failure by supervising the allocation of resources, distribution of income, and stabilization of the economy. Regular funding for these programs mostly secures through taxation.

    Borrowing from banks, insurance companies, and other governments and earning dividends from their companies helps fund federal government, state and local governments also receive grants and assistance from the federal government, in addition to ports, airport services And user fees with other features; Penalty derived from breaking the law; Revenue from licenses and fees, such as for driving; And the sale of government securities and bond issues is also the source of public finance.

    Public Expenditure:

    Public expenditure refers to government expenditure ie government expenditure. This is done by the central, state, and local governments of any country. Of the two main branches of public finance, i.e. public revenue and public expenditure, we will first study public expenditure.

    Public expenditure can define in this way,

    “The expenditure incurred by public authorities like central, state and local governments to satisfy the collective social wants of the people is known as public expenditure.”

    But now, the cost of the government across the world has increased a lot. Therefore, modern economists have started analyzing the effects of public expenditure on production, distribution, and income levels, and employment in the economy.

    Classical economists did not analyze the effects of public expenditure in the nineteenth century, due to very limited governmental activities for public expenditure.

    During the 19th century, most governments followed laissez-faire economic policies, and their work was limited to protecting aggression and to maintain law and order. The size of the public expenditure was very small.

    Public Revenue:

    To maximize the social and economic welfare of the governments, there is a need to do various tasks in the field of political, social, and economic activities. To do these duties and tasks, the government needs a large number of resources. These resources call public revenues. Public revenue includes revenue from administrative activities such as taxes, fines, fees, gifts, and grants.

    According to Dalton, however, the word “Public Revenue / Income” has two senses – broad and narrow. In its broadest sense, it contains all the income or receipts that can secure a public authority at any time of time. In its narrow sense, however, it includes only the sources of public authority’s income, which is commonly known as “revenue resources”. To avoid ambiguity, thus, the former calls “public receipts” and later “public revenue”.

    As such, receipts from public lending (or public debt) and public property sales mainly exclude from public revenue. For example, the budget of the Government of India is classified as “Revenue” and “Capital”. In the “heads of revenue”, the heads of income under the capital budget calls “receipts”, thus, the word “receipts” includes. Public income sources that exclude from “revenue”.

    Revenue receipts and capital receipts are both. Revenue receipts derive from the taxes of various forms. Capital receipts include primary internal market borrowing and external debt. However, a large portion of the state’s revenue comes from internal sources. The main point of difference between the two is that where there is a gain or earning of people in the form of a source; then there is public property in the form of a source.

    Don’t Confuse they are differences and similarities; Public and Private Finance: Differences, Similarities, and Dissimilarities.

    Introduction to Public Finance Expenditure Revenue and Debt
    Introduction to Public Finance, Expenditure, Revenue, and Debt, #Pixabay.

    Public Debt:

    In simple terms, government / public debt (also known as public interest, government debt, national debt, and sovereign debt) is the outstanding debt by the government. Borrowing by public authorities is of recent origin. This practice of revenue collection was not prevalent before the eighteenth century.

    “Public debt” often uses interchangeably with sovereign debt terms. Public debt usually refers only to National debt. But in some countries, loans outstanding by states, provinces, and municipalities also include.

    In the Middle Ages, borrowing was a rare event. Whenever there is urgency, there is usually a war; the emperor relies on their deposits or borrows on their own debts. However, such lending was not recognized by society. It was considered a “dead-weight” loan.

    This promises to the government with them that the holders of these bonds will be paid interest at regular intervals, at the end of the term, at the lump sum rates at the regular intervals.

    Prof. According to Taylor,

     “Government debt arises out of borrowing by the Treasury, from banks, business organizations, and individuals. The debt is in the form of promises by the treasury to pay to the holders of these promises a principal sum and in most instances interest on that principle.”

    Prof. Adams points out that public debt is the source of advance revenue which is opposite with direct/derived revenue; and, therefore every question of public debt should be judged in the light of this fact.

  • Public and Private Finance: Differences and Similarities

    Public and Private Finance: Differences and Similarities

    What does Public and Private Finance mean? Public and Private Finance: Differences, Similarities, and Dissimilarities; what their meaning? Public finance is the finance sector that deals with the allocation of resources to meet the set budgets for government entities. Private Finance can classify into two categories the public or personal finance and business finance. Personal finance deals with the process of optimizing finances by individuals such as people, families, and single consumers.

    The Concept of Public and Private Finance; explain into Differences, Similarities, and Dissimilarities.

    Public finance has several branches; public revenue, public expenditure, public debt, budget policy, and fiscal policy. This branch of economics is responsible for the scrutiny of the meaning and effects of financial policies implemented by the government. This sector examines the effects and results of the application of taxation and the expenditures of all economic agents and the overall economy. Richard Musgrave, a renowned Economics professor, terms Public Finance as a complex of problems that are centered around the income and expenditure processes of the government.

    Personal Finance deals with the process of optimizing finances by individuals such as people, families, and single consumers. A great example is an individual financing his/her car by the mortgage. Personal finance involves financial planning at the lowest individual level. It includes savings accounts, insurance policies, consumer loans, stock market investments, retirement plans, and credit cards.

    Business Finance involves the process of optimizing finances by business organizations. It involves asset acquisition and proper allocation of funds in a way that maximizes the achievement of set goals. Businesses can require finances on either of the three levels; short, medium, or long term.

    Differences between Public and Private Finance:

    The following differences are explained into two sections; A) Basic, and B) Advanced.

    A. Basic differences part one are;

    About the differences between private and public finance.

    • The pattern and volume of expenditure of an individual are influenced by his total resources income and wealth but in the case of government, expenditure determines income. Moreover, government expenditures de­termine people’s income. If the government spends money on road construc­tion, some employment is automatically generated.
    • Private individuals or firms are mainly concerned with private con­sumption or profits. The government aims at promoting the welfare of society rather than that of the individual. The individual (or a firm) is mainly concerned with his (its) present gains and prospects, not with that of the distant future. The government has to serve society generation after generation.
    • Private firms derive income by selling goods and they pay to factors of production according to the quantity or quality purchased. The services of governments are usually made available to individuals quite irrespective of the cost and often at rates that do not cover full costs.
    • A public authority can vary the amount of its income and expenditure within limits, of course, but more easily than an individual. An individual cannot easily double his income or halve his expenses even if he would be better off that way. But this is not so difficult in the case of Governments.
    A. Basic differences part two are;

    About the differences between private and public finance.

    • A public authority usually does not discount the future at as high a rate as an individual. The reason is obvious. The life of a man is counted in years and his foresight is limned. A-State is supposed to live forever. Hence, future satisfactions do not appear so small against present utilities to a State as they do to an individual. He always prefers a bird in hand to two in the bush even though the two in the bush may be fairly certain tomorrow.
    • A wise man is he who, after meeting his needs, saves something to lay by. Not so with a State. A State should not ordinarily try to hoard but should repay to the people in services all that it receives in taxes. A heavily surplus budget is for this reason as bad as, and perhaps even worse than, a heavily deficit one. The deficit budget may propose to incur the deficit for the promotion of mass welfare, while the surplus budget is only an extra burden on the tax-payer.
    • There is no fixed period over which an individual balances his budget. State budgets are -generally made for one year. But the income and expenditure of an individual are continuous and cover the whole period of his life.
    • Individual finance is kept a secret, whereas State finance is made public. The budget is published and every citizen is welcome to scrutinize it and comment on it. An individual will not let anybody have a peep into his financial position.
    B. Advanced differences;

    The following differences below are;

    Borrowing:

    The government can borrow from itself, it can simply go back to the people to ask for loans in whichever financial asset e.g. bonds when shortages arise. However, an individual can’t borrow from itself.

    Objective:

    The public sector’s main objective is to create social benefits in the economy. The private industry seeks to maximize personal or profit benefits.

    Currency ownership:

    The government is in charge of all aspects related to currency. This involves the creation, distribution, and monitoring. No one in the private sector allows to create currency, this is illegal and most countries classify it as a capital offense.

    Present or future Income:

    The public sector is more involved with future planning and making long-term decisions. The government makes decisions that will bear fruits in the long-term even ten years. These investments could include the building of schools, hospitals, and infrastructure. The private industry makes financial decisions on projects with a shorter return waiting time.

    Income and Expenditure Adjustment:

    The government adjusts the income according to the expenditure budget. The private sector including individuals and private businesses adjust their expenditure according to the income or future estimates. The government first creates an outline for the expenditure then devices means of acquiring the monetary budget needed. Private finance involves cutting your coat according to your cloth.

    Coercion to getting Revenue:

    The government can use force to get revenue from individuals. This could involve the use of force to get taxes. The private sector, however, doesn’t have this authority.

    Surplus Budget Concept:

    Excess income or surplus budgets is a great virtue in the private sector, this is however not the case in public finance. The government is expected to only raise what is needed for a fiscal year. Of what use would it be to have surplus budgets? It would be much easier to offer tax reliefs to the tax-payers to offset the surplus.

    Ability to Make Huge and Deliberate Changes:

    The public finance sector can make huge decisions on income amount without any consequences. For example, it can effectively and deliberately increase or decrease the income amount instantly. Businesses and individuals can’t make these decisions and implement them immediately.

    Similarities between Public and Private Finance:

    While the individual is concerned with the utilization of labor and capital at his disposal, to satisfy some of his wants, the state is concerned with the utilization of the labor and capital and other resources to satisfy social wants. It will observe that both private and public finance have broadly, the same objective, namely the satisfaction of human wants.

    However, while private finance em­phasizes individual interests public finance attempts to promote so­cial welfare. From this, it may though that public finance is only an extension of private finance and that the rules and regulations which apply to private finance will also apply to public fi­nance.

    The following similarities below are;

    Borrowing:

    Borrowing is a common element both in private and public fi­nance. Just as an individual borrows from different sources when current incomes are insufficient to meet the current expenditure, the public authority also resorts to borrowing, when its revenue fall short of aggregate expenditure.

    Problems of Adjustment of Income and Expenditure:

    Both public and private finance always face the problem of the adjust­ment of income and expenditure. Hence the problem of choice is common in both types of finance. Both kinds of finance have income and expenditure. Both try to balance their income and expenditure.

    Rationality:

    Private and public finance are based on rational behavior. The resources at the disposal of private individuals and public authority are limited. Therefore in both cases, maximum care is taken to en­sure better utilization of scarce resources. A rational individual tries to maximize personal benefits from his expenditure. Likewise, a rational government seeks to maximize social benefits from public expenditure.

    The scarcity of Resources:

    Both have limited resources at their disposal. Both public and private individuals are required to match their income and expenditures in such a way that both make the optimum use of scarce resources.

    Loans are Repayable:

    Both private and public loans are required to repay. An individual borrows money from various sources to meet personal requirements. But that too cannot unlimited. He has to repay his loans. Like individuals, the government cannot live beyond its means. It can temporarily postpone repayment of loans, but it is obligatory to repay the loans. Thus, public finance may regard as an extension of private finance. This, however, is not true.

    Public and Private Finance Differences Similarities and Dissimilarities
    Public and Private Finance: Differences, Similarities, and Dissimilarities, #Pixabay.

    Dissimilarities between Public and Private Finance:

    One can notice fundamental dissimilarities between public and private finance.

    The important differences are:

    Public Budget is not Necessarily Balanced:

    An individual tries to maintain a balanced budget and maintenance of a surplus budget is a virtue. Instead of a balanced or surplus budget, it is desirable to have a deficit budget of a government to increase the country’s productive power. In other words, a surplus budget may not stimulate economic activities. On the contrary, a deficit budget often makes to finance economic development.

    The scope of Study:

    Public finance studies the complex problems that center around the revenue – expenditure process of government. Private finance, on the other hand, confines to the study of those aspects of the economy that arise in the course of operation of private households in the sphere of financial transactions and activities. Hence in terms of scope of study private finance has a limited sphere of operation.

    Compulsory Character:

    There are certain items of expenditure that the state can neither avoid nor postpone. Irrespective of the availability of resources, this type of expenditure should in­cur.

    According to Prof. Findlay Sierras,

    “Another characteristic of public expenditure is its compulsory char­acter.”

    The expenditure on defense, civil administrations, etc. is compulsory. Likewise, the state can compel people to pur­chase and consume a particular variety of cloth, wheat, or other com­modities at a price fixed by the state.

    Nature of Resources:

    There is a difference between private and public authorities as re­gards the nature of resources. While the individual has only limited resources at his disposal, the public authorities can even draw upon the entire wealth of the community, by raising a force, if necessary.

    Tax payment is a personal responsibility of the taxpayer. Nobody can refuse to pay taxes if it is imposing on him. Besides tax rev­enue, the public authorities can borrow funds from the general public and if needed, from outside the country.

    The government can even resort to deficit financing, as and when the financial situation worsens. As compared to this, individuals and business houses have only a limited source of resources.

    Coercive Authority of the Government:

    An individual cannot raise coercive methods to raise his income. But the government can use force to collect the necessary revenue. Since the public authority possesses coercive power, it can raise the rate of taxes, add new taxes to the existing system, and force taxpayers to pay taxes promptly. Moreover, during the financial crisis, the government can intro­duce, the compulsory deposit of funds, using the coercive authority of the state.

  • Public Revenue: Introduction, Meaning, Definition, Sources, and Classification

    Public Revenue: Introduction, Meaning, Definition, Sources, and Classification

    What does Public Revenue mean? Public revenue money receives by a Public. The article on Public Revenue: Introduction, Meaning, Definition, Sources, and Classification. Each explains as, Introduction to Public Revenue, Meaning of Public Revenue, Definition of Public Revenue, Sources of Public Revenue, and Classification of Public Revenue. It is an important tool for the fiscal policy of the Public and is the opposite factor of Public Spending.

    Here are explain the Concept of Public Revenue; their key points – Introduction, Meaning, Definition, Sources, and Classification.

    By Wikipedia; Revenues earned by the government are received from sources such as taxes levied on the incomes and wealth accumulation of individuals and corporations and the goods and services produced, exports and imports, non-taxable sources such as government-owned corporation’s incomes, central bank revenue and capital receipts in the form of external loans and debts from international financial institutions. It is used to benefit the country.

    Governments use the revenue to better develop the country, to fix roads, build homes, fix schools, etc. The money that the government collects pays for the services that are provided for the people. The public sector in three concepts very important, Public Finance, Public Expenditure, and Public Revenue.

    Introduction to Public Revenue:

    Governments (Public) need to perform various functions in the field of political, social & economic activities to maximize social and economic welfare. To perform these duties and functions, the government requires a large number of resources. The revenues from different sources received by the government call public revenues. Some regularly collect whereas some irregularly collect.

    These resources call Public Revenues. Public revenue consists of taxes, revenue from administrative activities like fines, fees, gifts & grants. Revenues are not repayable. Some of them are obtained from the sale of public utilities whereas some are obligatory payments to the government.

    Meaning and Definition of Public Revenue:

    The income of the government through all sources calls public income or public revenue.

    According to Dalton, however, the term “Public Income” has two senses — wide and narrow. In its wider sense, it includes all the incomes or receipts which a public authority may secure during any period. In its narrow sense, however, it includes only those sources of income of the public authority which are ordinarily known as “revenue resources.” To avoid ambiguity, thus, the former is termed “public receipts” and the latter “public revenue.”

    As such, receipts from public borrowings (or public debt) and the sale of public assets are mainly excluded from public revenue. For instance, the budget of the Government of India is classified into “revenue” and “capital.” “Heads of Revenue” include the heads of income under the capital budget are termed as “receipts.” Thus, the term “receipts” includes sources of public income that are excluded from “revenue.”

    There are both rev­enue receipts and capital receipts. Revenue receipts are derived from taxes of different forms. Capital receipts include primary inter­nal market borrowing and also external loans. However, the bulk of state revenue comes from internal sources. The major point of dis­tinction between the two is that while the former has the receipts or earnings of the people as the source, the later has the public prop­erty as the source.

    Sources of Public Revenue:

    The following key points highlight the two main sources of public revenue from India.

    • Tax Revenue, and.
    • Non-Tax Revenue.

    Now, explain;

    A] Tax Revenue:

    Taxes are the first and foremost sources of public revenue. It is compulsory payments to the government without expecting direct benefit or return by the taxpayer. Taxes collected by Government are used to provide common benefits to all mostly in the form of public welfare services. They do not guarantee any direct benefit for the person who pays the tax. It is not based on a direct quid pro quo principle.

    Features of Tax Revenue:

    The main characteristic features of a tax are as follows:

    • A tax is a compulsory payment to pay by the citizens who are liable to pay it. Hence, the refusal to pay a tax is a punishable offense.
    • There is no direct, quid pro quo between the tax-payers and the public authority. In other words, the taxpayer cannot claim reciprocal benefits against the taxes paid. However, as Seligman points out, the state has to do something for the community as a whole for what the taxpayers have contributed in the form of taxes. “But this reciprocal obligation on the part of the government is not towards the individual as such, but towards the individual as part of a greater whole.”
    • A tax is levied to meet public spending incurred by the government in the general interest of the nation. It is a payment for an indirect service to make by the government to the community as a whole.
    • A tax is payable regularly and periodically as determined by the taxing authority.

    Taxes constitute a significant part of public revenue in modern public finance. Taxes have macro-economic effects. Taxation can affect the size and mode of consumption, the pattern of production and distribution of income and wealth. Progressive taxes can help in reducing inequalities of income and wealth by lowering the high-income group’s disposable income.

    Disposable income is meant the income left in the hands of the taxpayer for disbursement after-tax payment. Taxes imply a forced saving in a developing economy. Thus, taxes constitute an important source of development finance.

    Types of Tax Revenue:

    The following types below are;

    1] Union Excise Duties:

    They are, presently, by far the leading source of revenue for the Central Government and are levied on commo­dities produced within the country, but exclu­ding those commodities on which State excise is levied (viz., liquors and narcotic drugs). The most important commodities from the revenue point of view are sugar, cotton, mill cloth, tobacco, motor spirit, matches, and cement.

    2] Customs:

    Customs duties include both import and export duties. These are the second-most important source of revenue for the Central Government.

    3] GST Tax:

    Goods and Services Tax is an indirect tax levied in India on the supply of goods and services. GST levies at every step in the production process but is meant to refund to all parties in the various stages of production other than the final consumer.

    India’s biggest indirect tax reform in the form of Goods and Services Tax (GST) has completed plus 1 year. A comprehensive dual GST was introduced in India from 1 July 2017.

    4] Income Tax:

    Income tax is at present another important source of revenue for the Central Government. It levies on the incomes of individuals, Hindu undivided families, and unregistered firms.

    5] Corporation Tax:

    The income-tax on the net profits of joint-stock companies calls corporation tax.

    6] Wealth Tax:

    It is an annual tax on the net wealth of individuals and Hindu undivided families. It is a progressive tax.

    7] Gift Tax:

    It is a tax on gifts of property by an individual in his lifetime to future succe­ssors.

    8] Capital Gains Tax:

    It applies to capital gains resulting from the sale, exchange or transfer of capital assets.

    9] Hotel Expenditure Tax:

    Recently, a new tax has been levied on those who patronize high-class hotels.

    10] Tax on Foreign Travel:

    Another new tax levied on foreign travel for conserving foreign exchange as well as to raise revenue.

    B] Non-Tax Revenue:

    The revenue obtained by the government from sources other than the tax calls Non-Tax Revenue. Public income received through the administration, commercial enterprises, gifts, and grants is the source of non-tax revenues of the government.

    The following sources of non-tax revenue below are:

    1] Interest Receipts:

    This largest non-tax source of Central Government’s revenue receipts is the interest it earns mainly on the loans it has advanced to State Governments, to financial and industrial enterprises in the public sector.

    2] Surplus Profits of the Reserve Bank of India (RBI):

    The surplus profits of the RBI is also a part of the revenues of the Central Government. In recent years, these have been quite substantial because of the large borro­wing by the Government from the RBI against Treasury Bills for financing the Five-Year Plans.

    3] Currency, Coinage, and Mint:

    The Govern­ment also derives income from running the Currency Note Printing Presses. Moreover, profits are made from the circulation of coins — this profit is the difference between the face value of the coins and their manu­facturing cost.

    4] Railways:

    The railways in India are owned and run by the Government of India. Accor­dingly, they pay a fixed dividend to general revenues, i.e., to the Central Government, on the capital invested in the railways. Besides, a part of the net profits made by the railways is also payable to the Central Government.

    5] Profits of Public Enterprises:

    Public enter­prises owned by the Central Government, e.g., the Steel Authority of India (SAIL), Hindustan Machine Tools (HMT), Bharat Heavy Electricals Ltd. (BHEL), State Trading Corporation (STC). The profits of such Public Sector Units (PSUs) are another source of revenue for the Government of India.

    6] Other Non-Tax Sources of Revenue:

    The main source among them is the Departmental Receipts of the various ministries of the Cen­tral Government by way of fees, penalties, etc.

    Public Revenue Introduction Meaning Definition Sources and Classification
    Public Revenue: Introduction, Meaning, Definition, Sources, and Classification, #Pixabay.

    Classification of Public Revenue:

    A scientific classification enables us to know in what respects these various sources resemble one another and in what ways they differ. Different economists have classified the sources of public revenue differently. Of the various classifications of public revenue available in economic literature, we shall review a few important ones.

    1. Taylor’s Classification:

    The most logical and scientifically based classification of public revenue is however provided by Taylor. He divides public revenue into four categories:

    • Grants and gifts.
    • Taxes.
    • Administrative revenues, and.
    • Commercial revenues.

    Now, explain;

    Grants and gifts:

    Grants-in-aid are how one government provides financial assistance to another to enable it to perform certain specified functions, for example, education and health grants made to the states by the central government.

    Grants-in-aid are the cost payments made by the grantor government and revenue receipts to the grantee, and no obligation of repayment involves. Gifts are voluntary contributions from individuals or institutions for specific purposes. Grants and gifts are voluntary and there is the absence of quid pro quo to the donor.

    Taxes:

    These are compulsory payments made to the government without expecting a direct return of benefits. The taxes involve varying degrees of coercive powers.

    Administrative Revenues:

    Under this group, fees, licenses, fines, and special assessments include. Most of these are voluntary and based upon the direct benefits accruing to the payer. They generally arise as a by-product of the administrative or control function of the government.

    Commercial Revenues:

    These are the receipts by way of prices paid for government-produced goods and services. Under this group, postal charges, tolls, interest on loans of state financial institutions or nationalized banks, tuition fees of public educational institutions include.

    2. Dalton’s Classifications:

    Dalton provides a very systematic, comprehensive and instructive classification of public revenue. In this opinion, there are two main sources of public revenue — taxes and prices. Taxes pay compulsorily whereas prices pay voluntarily by individuals, who enter into contracts with the public authority. Thus, prices are contractual payments.

    Taxes are sub-divided into:
    • Taxes in the ordinary sense.
    • Tributes and indemnities.
    • Compulsory loans, and.
    • Pecuniary penalties for offenses.
    Prices are sub-divided into:
    • Receipts from public property passively held such as rents received from the tenants of public lands.
    • Receipts from public enterprises charging competitive rates.
    • Fees or payments charged for rendering administration services, such as birth and death registration fees, and.
    • Voluntary public debt.

    These two groups must add to another group to make the classification exhaustive. Under this group, the following items include:

    • Receipts from public monopolies, charging higher prices.
    • Special assessments.
    • The issue of new paper money or deficit financing, and.
    • Voluntary gifts.

    3. Seligman’s Classification:

    Seligman classifies public revenue into three groups:

    • Gratuitous revenue.
    • Contractual revenue, and.
    • Compulsory revenue.

    Now, explain;

    Gratuitous revenue; comprises all revenues such as gifts, donations, and grants received by the public authorities free of cost. They are entire of a voluntary nature. Further, these are very insignificant in the total revenue.

    Contractual revenue; includes all those types of revenue which arise from the contractual relations between the public authority and the people. Fees and prices fall into this category. A direct quid pro quo is usually present in these types of revenue.

    Compulsory revenue; includes the income derived by the state from administration, justice, and taxation. Taxes, fines, and special assessments regard as compulsory revenue. These revenues express an element of state sovereignty. It is the most significant type of public revenue in modern times.