Open partnership is a foundation or government venture for substantial scale business and it is additionally called a statutory company or open endeavor.
Open endeavors are made for the sole point of giving basic administrations to the general population, it is dependably a substantial scale business I.e it may not be reasonable by the typical private venture as a result of the huge
necessities, any semblance of measure of worker, size of the land, the structure of the building, top managerial staff thus on this makes it complex and it is chiefly to give administrations to the individuals from the general population.
The main source or approach to produce cash keeping in mind the end goal to back open partnerships is through expense paid by the subjects, the establishment is made by a demonstration of parliament or in a military state, announce. The administration at that point delegate governing body to fill in as individuals who controls open partnership.
FEATURES OF PUBLIC CORPORATION :
Government ownership : the ownership of the enterprise is government which moves into large scale business in the name of providing essential services to the people, the reason government owns this kind of businesses is that if a normal private holds it, he/she might become a monopoly. It is totally owned and financed by government
No profit involve : it is created to provide essential services and not to maximize profit, the concept is not that they won'take any money at all, but the money they are making is always at the cheaper price which makes it not look like a profit oriented enterprises
Tax payer and government bears the risk : the risk of the bussiness is totally beard by both the government and the tax payer, because if tax are not paid properly In a particular month, then the enterprise is moving into pit slowly.
It is a legal entity : this means nothing but, it is like an organization that one could drag to court of law if found guilty of something, it can sue and can be sue.
Management : public corporation is controlled and administers by the appointees of the government called the board of directors, this board is directly accountable to the government that set up the corporation.
ADVANTAGES OF PUBLIC CORPORATION
To ensure standardize enterprise in a state: the state will gain more respect internally and externally for this, a private enterprise will only provide you normal service and unlike the government that provide essential services and not really money oriented.
Legal entity : it can sue and can be sued for any malaproprism, when things that are to be are not, so it an entity that is created by an act or decree.
Reduces unemployment : public corporation provide employment opportunities for the teeming amount of unemployed in the society.
It avoids consumer exploitation : public enterprise did not give rule for exploitation unlike what a private enterprise might so like being cruel, savage and monopolistic when attending to customers.
It provides infrastructural facilities : as it is mend to be, it provide infrastructure to the state.
DISADVANTAGES OF PUBLIC CORPORATION :
Subject to liquidation : the enterprise may liquidate due to the large involvement in large scale business.
Danger of monopoly : government as the only one to control that large scale business will then turn monopoly over the citizens.
It encourages wastage : the public enterprise as it is known is always generating money from the tax payer, so the government and its workers don't care if there is a waste unlike the normal private enterprise that will use all its might to avoid wastage.
No profit oriented : most of the public enterprises run loss due to the fact that it involved in that kind of large scale business without maximizing or making profit, for this the government is damn hell!
It requires large amounts of starting money: the money that one uses to start a public corporation or enterprise is always huge because of the large scale and need for facilities.
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