What are the Features of Public Enterprise?
An organization that has all or the majority of its shares owned by the government or a body under its control is referred to as a public business Despite the fact that public companies are established to provide a service, the commercial component cannot be disregarded As a result, public companies impose a defined price that includes profit in order to ensure the existence and growth of the company Some public firms are created under public control due to societal reasons
Some of the key characteristics of the public enterprise are listed as follows:
● Owned by Government: The government holds all of the shares in a public corporation, or the majority of the shares (at least 51 percent) in a joint venture with a private company.
● Controlled and Managed by Government: The government has the authority to nominate all or most of the enterprise's stakeholders as well as key management positions
● Distinct Legal Entity: Any organization established in accordance with the terms of this act is regarded as a distinct legal body with its own common seal Like a natural person, a public enterprise has the legal capacity to contract, own, sell, and be sued in its own name
● Service Motive: The government establishes enterprises to focus on those economic and non-economic activities that either need significant financial investment or have poor profit margins as opposed to private businesses. As a result,
the viewpoint of the general public is taken into account in all public enterprise activities.
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