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WEEK 10
TOPIC: Public Enterprises
CONTENT:
- Meaning of Public enterprise
- Formation and management
- source of capital
- Reasons for government ownership of public enterprises
- Advantages and Disadvantage
Sub-Topic 1: Meaning of Public Enterprise
Public enterprise is a business set up and managed by government with the sole aim to provide essential services to the public. It is also known as public corporation. Examples of public enterprises are NITEL, PHCN, Nigerian Airways, Nigerian Railway Corporation etc.
Characteristics/Features of Public Enterprise
- They are owned by government of a state or country
- The capital used to establish public enterprise is provided by the government
- They are established by an act of parliament or a decree under the military government.
- They are set to not to make profit but to provide essential services to the public
- Most of them operate as monopoly
- They are managed by board of directors appointed by the government
- They render essential services to the general public.
Formation and Management of Public Enterprises.
Public Enterprise or Public corporations are set up by an act of parliament at the federal level and by an edict at the state level. The law establishing these corporations states the objectives, aims and the specific functions and powers of the corporations. The law also states how the corporations will be managed.
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