Which sector comprises businesses owned and controlled by individuals or groups of individuals?

The private sector consists of businesses that are owned and operated by individuals or groups of individuals, rather than by the government or non-profit organizations. This ownership can take various forms, including sole proprietorships, partnerships, and corporations.

In this sector, entities are primarily driven by profit motives, focusing on providing goods and services to customers while generating income for their owners. The private sector plays a crucial role in the economy, fostering competition and innovation, and contributing to economic growth and employment.

In contrast, the public sector is made up of organizations owned and controlled by government entities, focusing on providing public services. The third sector typically includes non-profit organizations and charities dedicated to social or community goals, lacking profit motives. The cooperative sector, while still linked to private ownership, specifically refers to businesses owned and operated for the mutual benefit of their members.

Understanding these distinctions clarifies that the private sector's characteristic of individual or group ownership is its defining trait, making it the correct choice in this context.