public corporations Flashcards
define public corporation
a public corporation is a business or organization that’s owned and controlled by the government
define privatization
privatization is the transfer of state-owned assets to the private sector
define subsidies
financial benefits offered by the government to firms in order to encourage them to do something
what does state-owned mean
the government is responsible for the running and managing of the corporation
what does it mean when a public corporation is created by law
it means that public corporations are created by an act of parliament
what is the significance of incorporation for public corporations
public corporations are incorporated businesses, meaning they have a separate legal identity
what does state-funded refer to
the government invests capital into these organizations, often using tax revenues
what is the primary goal of public corporations
to provide public services at low or no cost
what is public accountability in public corporations
these organizations must provide reports on their progress and are accountable to the public who fund them through taxes
why does the government own public corporations
to avoid wasteful duplications, fill gaps left by the private sector, maintain control over strategic industries, save jobs, and serve unprofitable regions
what is a disadvantage of the government owning businesses
a disadvantage is the cost to taxpayers, especially if the corporation faces losses
what is political interference in public corporations
when government changes disrupt the policies and management of public corporations
what does inefficiency mean in the context of public corporations
lack of competition, which can lead to reduced productivity and slower services
what is contracting out as a form of privatization
allows the general public to bid on and purchase businesses previously owned by the government
what is the sale of land and properties in privatization
the government selling assets previously owned by the state, sometimes at discounted rates
