Public enterprises in: Public enterprises are the types of organisations which are owned, controlled and managed by the government, business organisations are owned by either the local, state or federal government and their major objective is to provide social services to the people.
They are associated with such names as authority, corporation, boards and commissions. Examples of public enterprises are public corporations and companies owned by government such as the Power Holding Co-operation of Nigeria (P.H.C.N.), the Nigerian Ports Authority (N.P.A.), Nigerian Television Authority (N.TA.), Nigerian Railway Corporation (N.R.C.) and Nigerian Telecommunications Plc. (N.I.T.E.L.)
Characteristics or features of public enterprises
Government provides the capital:
Government provides the necessary capital required to set up public enterprises.
Ownership belongs to the government: Public enterprises are usually set up by Acts of legislation and the enteiprise belongs to the government.
Objective is to provide social services: The major reason of setting up public enterprises is to provide social amenities and services to the people at reduced cost.
Management is accountable to the government: The management of public enterprises is directly accountable to the government that set up the enterprise.
Government and tax payer borne the risks: The risks associated with public enterprises are usually borne by the government and tax payers who provided the capital for setting up the enterprises.
Board of directors manage the business: The public enterprise is managed by board of directors appointed by the government.
Public enterprise is a legal entity: Public enterprise is a corporate body or a legal entity, meaning that it can sue and be sued in its own right.