Types of Business Organizations: In Public Sector
Almost all countries, except agrarian societies, have both a private and public sector of the economy. Unlike businesses in the private sector, public sector business organizations are more concerned with social objectives than profit objectives.
Definition of public sector organizations
Public sector businesses, called public corporations, are organizations set up by law to run services or industries on behalf of the government. They are owned or controlled by the government (the state) which makes all decisions. They have separate legal identity from their owners, which is the government, so they can sue or be sued, the same as incorporated bodies in private sector of the economy.
Why public corporations exist?
Public corporations exist in order to provide essential services to the public which are not fully provided by businesses in the private sector.
The government also aims to prevent exploitation of customers and to avoid duplication of resources.
By owning and controlling the public sector business organizations, the government can also protect jobs, create employment and maintain key industries such as electricity supply, natural resources or national transportation links.
