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public corporation - Coggle Diagram
public corporation
public sector
owned by central government and local authorities
similar to a private company in a day to day basis
characteristics
are funded from taxes
do not have profit as an objective
features
incorporation
company that is separate entity than the government but is owned by the government
state-funded
the government funds and controls the company
created by law
created by an act of parliment
provide public services
provide free services that the private sector won't provide
state owned
the government owns the company
public accountability
the requiremen for government officials to acount for their actions in public
advantages and disadvantages
reason for public company
fill the gap left by private sector
To give free services that are needed like parks or street lights that private companies will not offer for free.
mantain jobs of strategic industries
they can control the important industries important to the country. Exp: electricity, television.
serve unprofitable regions
To help and maintain order in regions that don’t have as great of a profit compared to other parts of the country
avoid wasteful duplication
to avoid duplication of a similar job, for example police or firefighters
save jobs
reasons against public ownership
political interference
difficult to control
there is lots of people that work in it meaning it will be difficult to control
inefficienty
people working in the public sector are normally lazy
cost of government
When working for the government more laws are applied to the business
privatization
when a public company turns into a private company
why does privatisation take place?
To generate income
make more money than when controlled by the government
To reduce inefficiency in the public sector
the company’s employes become more efficient as they will now be more professional
As a result of deregulation
there is a reduction of laws and rules as they are not part of the government anymore
To reduce political interference
the government doesn’t interfere in the company.