What is a government corporation

What is a government corporation

Government corporation is a term used in the United States that refers to any business entity created by the federal government. These are also called public corporations or quasi-government corporations.

What is a government corporation?

A government corporation is a business entity in which the government owns all or part of the stocks. It can be any type of organization, for instance, an insurance company, bank, TV station or railroad. A civil association may also be considered a government corporation.

The United States has over 70 federal corporations under its control. The most important government corporations are Amtrak, TVA and the U.S. Postal Service.

The meaning of government corporation

The meaning of the term ‘government corporation is an organization that has been created by a government and funded through taxation or other government revenue sources for specific public purposes. It is not to be confused with government-sponsored corporations such as Fannie Mae, Freddie Mac, Sallie Mae, Ginnie Mae and Student Loan Marketing Association (Sallie Mae).

Government corporation vs. government-owned company

A ‘government-owned company’ is a business entity in which the government owns all of the stocks. This means it holds complete control over that specific company. A government corporation, on the other hand, can be a combination of both stocks and public ownership. The U.S. Postal Service, for example, is a quasi-government-owned company.

Government corporation vs. government-sponsored enterprise

The term ‘government-sponsored enterprise’ denoted a business entity created and supported by the U.S. government and established as an independent corporation to fulfill some public purpose. A prime example is Fannie Mae (Federal National Mortgage Association) which was established in 1938 by the U.S. Congress to support liquidity and stability of the mortgage market in the country.

Government corporation vs. state-owned enterprise

A ‘state-owned enterprise’ is a business entity that has been fully funded by its government but not necessarily created for public purpose. This type of organization is usually found in developing countries.

Example of a government corporation

The Alaska Railroad, Tennessee Valley Authority and the Port Authority of New York and New Jersey are government corporations.

The U.S. Postal Service is a quasi-government-owned company, but it is not considered a government corporation because of its hybrid status of public and private ownership.

What are 2 government corporations?

Government corporations are typically found in the United States. The U.S. Postal Service and TVA are examples of a quasi-government corporation, while Amtrak is a full government corporation.

The TVA or Tennessee Valley Authority was founded in 1933 to provide electric power for people in parts of the Southeastern United States that were not being supplied with this service. It is an independent agency of the U.S. government and provides electricity for over 9 million people in the states of Alabama, Georgia, Kentucky, Mississippi, North Carolina, Tennessee and Virginia.

The Alaska Railroad is a public corporation owned by the State of Alaska since 1914 when it was formed under the Reorganization Act to take over the operations of Alaska’s first railway, which had been built by the U.S. government in response to a demand for transportation and communication with the territory during construction on the Panama Canal over a decade earlier.

TVA is a quasi-government corporation, while Amtrak is a full government corporation. Government corporations are typically found in the United States.

Conclusion

Although there is no clear distinction between a government corporation and a government-owned company, the former can be considered as a business entity in which the government holds partial or complete stocks. Government corporations are organizations that have been created by a government and funded through taxation or other government revenue sources for specific public purposes.

What is a government corporation

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