Public Sector Firms
It is a part of the economy where all the factors of
production are owned and controlled by government.
Public Corporation
Public Corporation is a
separate legal form of organization in the Public Sector set up by an Act of
Parliament to run the whole or most of an industry.
The main aim of public
corporations is to provide efficient public services at a reasonable price.
They do not aim to maximize profit.
There are two
main forms of Public Corporations.
•
Those who provide a product to the public and charge
for it directly.
Example: Ferry Service
•
Those who provide a product to the public and do not
charge for it directly.
Example: Radio Service
Features of
public corporation:
•
It is set up by an Act of Parliament
•
It is run by a board appointed by a government minister
•
The general policy is laid down by the government
•
The day-to-day management is left to the board
•
The government sets financial targets for the Public
Corporation in the parliament
•
It is a corporate body with a separate legal
existence
Municipal Enterprise
Some local authorities
involve in running trading enterprises. They provide services such as local bus
service. They are often subsidized from rates.
These businesses are run by local government authorities,
which might be free to the user and financed by local taxes.
(e.g, street lighting, schools, local library, rubbish collection). If these
businesses make a loss, usually a government subsidy is provided.
However, to reduce the burden on taxpayers, many municipal enterprises are
being privatized.
Private
sector firms
It
is a part of the economy where all the factors of production are owned and
controlled by private individuals. Private
Sector consists of business organizations such as Sole Traders, Partnership
Firms, Private Limited Companies and Public Limited Companies.
No comments:
Post a Comment