Public company: check its characteristics, examples and more
As you already know, on this website we are dedicated to surveying all kinds of issues related to the wide business world. Today is no exception: we are talking about a topic that anyone should know because it concerns them directly. It is about the public company : we invite you to discover what it consists of, how it benefits society, what its main attributes are and much more.
Do not miss this analysis, as we offer you an article reviewed by experts on the subject and prepared with reliable, high-quality sources. Actually, if you want to obtain some information on business matters, there is no better website than ours! So do not detach from the screen and enjoy informing yourself as you deserve it.
What is a public company?
Let’s answer this question directly to get to the point. A public company is characterized by belonging, totally or partially, to the government of a certain State. By virtue of this, political leaders can participate in business decision-making and thus influence the direction of the organization .
Although, like any other economic undertaking, in this case it seeks to obtain dividends (money gains) as a result of a certain activity, the main objective is to respond to the basic needs of the population. Thus, for example, the public company usually operates in areas such as water and sewer service, electricity, gas or fixed telephony. These are issues considered basic for survival and the achievement of a dignified life.
Normally this type of company is created by means of decrees signed by the President and its commercial activities receive certain state financing, in addition to that derived from those profits obtained thanks to the exploitation of a natural resource, raw material, service, etc. In any case, it is necessary to clarify that the performance of the public company is not usually measured by the amount of money obtained but by the level and quality of the service it provides to the population of a certain place.
In each jurisdiction there are different laws that make the fulfillment of public functions, and these must be followed by directors and employees of state organizations. In general, the public company goes through various fiscal controls carried out by the Comptrollers’ Offices (competent bodies created especially to carry out such control). What is sought is to verify that the use of public funds is correct and thus avoid corruption.
As we suggested above, this kind of company has to solve the basic needs of a population and aspire to achieve the common good of a certain society. Due to this, the productive cost tends to take second place in importance as long as the service offered is of the quality required by the citizens. The opposite happens in private companies: the main objective is to obtain the highest possible profits and generate a better presence in the market.
One thing to keep in mind? For a company to be considered public, the National State must own, at least, more than half of its shares (for example, 51%). If you have a lower proportion, you will not be able to participate in making the big economic decisions of the organization. In many cases, commercial organizations are called “mixed” because they combine private and public capital.
Since you know what a public company consists of , you can go to the next section to check specific cases of it in your near reality. You will see that it is a practically everyday issue, present in the life of any person. These types of companies play a more important role in your daily well-being than you could imagine.
Public company: 15 examples
In our publications we tend to connect theory with practical examples that are applied in everyday life. So after the explanation we have provided about the concept of ” public company “, we show you a list of 15 specific examples of this type of entity. It will be very useful to have, in your head, a much more complete picture of what this question implies:
- A company that distributes natural gas to residential homes.
- A company that provides running water and sewer service in homes.
- An entity that supplies electricity to most homes.
- State telephone companies (traditionally for fixed telephony, although now other services have been added).
- Firms that sell fuels for automobiles and vehicles in general (naphtha or natural gas).
- The entities that distribute postal mail (letters, packages, etc.).
- A railway laying company and its transport service (cargo or passengers).
- A state airline.
- A banking entity dependent on the State, provincial, national or other size.
- A factory of military weapons and supplies for the Police or other public services (firefighters, for example).
- A zoo or other public walk.
- Certain public communications companies (radio and TV, for example).
- The entities that are dedicated to managing seaports.
- Savings banks created by the State.
- Food producing companies considered part of the basic food basket, and which are sometimes distributed at fixed prices or directly for free.
You see that there is indeed a great variety of companies belonging to the State ; We have cited a few examples for illustrative purposes, but their quantity and nature may vary depending on the specific needs of each population and the public policies implemented in each governorate. We invite you to explore many other examples of these kinds of organizations on the Internet .
In summary, our analysis has shown you the main qualities of a public company and many practical examples of it in all areas. Do you think there is some aspect of the topic that we have not considered but that it would be good to include? We await your contribution here below the post. We love knowing the opinion of our readers so that we can improve day after day.