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
