What defines a public corporation?

A public corporation is characterized as a firm that is owned and operated by the state. This type of corporation is typically established to provide a public service or benefit that is not adequately met by the private sector. Since they are government-owned, public corporations often have different objectives compared to private firms, focusing more on fulfilling societal needs rather than generating profits.

The distinction between public corporations and private firms lies in ownership and the purpose of the organization. While private firms prioritize profitability and can be owned by individuals or groups of shareholders, a public corporation operates under government regulations and is funded through public resources. This structure supports the notion that public corporations are accountable to the government and ultimately to the public, ensuring that their operations align with the best interests of society.

In contrast, a firm that is privately owned, managed by shareholders, or operates without government intervention does not align with the definition of a public corporation, as these characteristics describe private enterprises. Public corporations specifically emphasize state ownership and governance, differentiating them clearly from private sector operations.