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Reasons for the establishment of public corporation
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[QUOTE="King bell, post: 274422, member: 75687"] Public cooperation are organizations that are not owned by one individual or a small group of people. Businesses often work in this way, but they are not the only type. There are many benefits to private companies over public corporations that is why governments often establish these corporations and their use contrasts greatly with private ones. More often than not, public corporation are found in developing countries where the lack of private capital is an issue and there needs to be a way for businesses to be established without being funded by several investors. Some other reasons for the establishment of public corporation include: creating jobs, providing basic services such as water and electricity, market regulation, etc... People are often skeptical of private companies as they believe that individuals looking to make a profit will compromise their morals. Public corporations don't have this same problem as they are controlled by the government and in the interest of the public good. This is yet another reason that public corporations are established. Generally, when a country is expanding, it is common for them to establish public corporations to ensure that many citizens have access to necessities such as food and water because these necessities could not be provided for by private companies. [/QUOTE]
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