Public corporations

Public cooperations

These are the businesses in the public sector, nationalized, completely owned by the government. They’re operated by board of directors

Advantages

• Managed with social objective rather than profit
• Loss making services might still be kept operation if there is social benfit
• Finances raised by the government

Disadvantages

• Lack of profit leads to inefficiency
• Subsidies lead to inefficiency
• Governments interfere

Objectives

• Provide goods that are beneficial
• Provide services
• Keep prices low
• Provide employment
• Bring economic stability
• Increase efficiency
• Continue product even if it is going in loss
• Provide merit and public goods
• Avoid private sector monopolies