Public Administration is political, while private administration is non political. Public Administration takes place in a political context and work under political direction and scrutiny. They put into effect the policies made by the elected members of legislature and political executive. Business Administration, on the contrary is not subject to political direction except in times of emergency. It functions largely under the influence of market economic condition. The primary purpose of government organization is to provide services to the people of promote social good. They are not oriented towards making profit for the government. On the other hand, the major aim of private business organization is to make profit for their owners. Services to the public is only an incidental benefit of business activity. A businessman would not continue unprofitable business activity, even it is essential for public welfare. The ends of Public administration is communal, while those of private business is personal. The main beneficiary of public administration activities is the entire community, whereas that of business is the owner of business himself. Further, 'Profit' serves as a simple criterion to judge the efficient or inefficient performance of a business firm. But the abstract value of 'social good' promoted by public organization can not be measured in terms of monetary gain or loss. There is no direct comparison between governmental agency's cost and the value of its services to the public.
Public Administration operates within a legal framework. The activities of Public Administration are fixed by a set of constitutional practices, law, rules and regulations. Government officials must always act within their legal power. They