The different forms of state owned business organization - QS Study
QS Study

The following are the major organizational forms of the state owned business organization-

  • Departmental Organization: it was, at one point of time, the prominent form of organization of the public enterprises for two reasons. First, it was easy for a government to create an enterprise within the organizational framework of one of it’s already existing departments. Secondly, in the initial stages of developmental planning, the number of such enterprises with commercial functions was small.
  • Public Corporation: It is an autonomous form of the organization clothed with the power of the government, but possessed with the flexibility and initiative of private enterprise” according to F.D. Roosevelt, the President of USA, given while discussing the Tennessee Valley Authority. Public Corporation may be understood in general terms as an autonomous commercial organization established at government’s insistence outside the framework of government department and company legislation.
  • Government Company: The joint stock company is another organizational form of public The company form’ tads may also be called a ‘government company’ is described in many countries as an enterprise registered under the Companies Act of the land in which the government and/or public enterprises hold at lest 51 per cent of equity capital.
  • Joint Enterprise: State participation in an economic activity along with the private sector has led to the creation of a specific type of organizational form, which is known as joint enterprise.
  • Development Corporation: it is difficult to exactly define ‘Development Corporation’. On the basis of empirical evidence world over, especially in the developing countries, it may signify an autonomous agency in the public sector, primarily to promote, rather than to operate, economic activities through a system of subsidizing.