In the context of state ownership, a joint-stock corporation is most commonly utilized as a mechanism for…

Joint-stock corporation in the context of "State ownership"

In market-based economies, governments frequently utilize the structure of a joint-stock corporation to manage and operate state-owned assets, retaining either full or a controlling share of the company's stock. This practice, known as creating a state-owned enterprise, allows governments to participate in competitive markets and potentially fund general budgets through profitable entities.

⭐ In the context of state ownership, a joint-stock corporation is most commonly utilized as a mechanism for…

Governments in market economies often choose to structure state-owned enterprises as joint-stock corporations, allowing them to control and operate these assets while participating in market activities.

⭐ Core Definition: Joint-stock corporation

A joint-stock company (JSC) is a business entity in which shares of the company's stock can be bought and sold by shareholders. Each shareholder owns company stock in proportion, evidenced by their shares (certificates of ownership). Shareholders are able to transfer their shares to others without any effects to the continued existence of the company.

In modern-day corporate law, the existence of a joint-stock company is often synonymous with incorporation (possession of legal personality separate from shareholders) and limited liability (shareholders are liable for the company's debts only to the value of the money they have invested in the company). Therefore, joint-stock companies are commonly known as corporations or limited companies.

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Joint-stock corporation in the context of Government organisations

State ownership, also called public ownership or government ownership, is the ownership of an industry, asset, property, or enterprise by the national government of a country or state, or a public body representing a community, as opposed to an individual or private party. Public ownership specifically refers to industries selling goods and services to consumers and differs from public goods and government services financed out of a government's general budget. Public ownership can take place at the national, regional, local, or municipal levels of government; or can refer to non-governmental public ownership vested in autonomous public enterprises. Public ownership is one of the three major forms of property ownership, differentiated from private, collective/cooperative, and common ownership.

In market-based economies, state-owned assets are often managed and operated as joint-stock corporations with a government owning all or a controlling stake of the company's shares. This form is often referred to as a state-owned enterprise. A state-owned enterprise might variously operate as a Nonprofit corporation, as it may not be required to generate a profit; as a commercial enterprise in competitive sectors; or as a natural monopoly. Governments may also use the profitable entities they own to support the general budget. The creation of a state-owned enterprise from other forms of public property is called corporatization.

View the full Wikipedia page for Government organisations

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