Examples of government-owned corporation in the following topics:
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- A government-owned corporation, also known as a state-owned company, state enterprise, publicly owned corporation, or commercial government agency, is a legal entity created by a government to undertake commercial activities on behalf of the government.
- In some cases, government-owned corporations are considered part of the government, and are directly controlled by it.
- In other instances, government-owned corporations are similar to private enterprises except that the government is the majority stockholder.
- In the United States, there is a specific subset of government-owned corporations known as government-sponsored enterprises (GSEs).
- Differentiate between a government-owned corporation, a government-sponsored enterprise, and organizations chartered by the government that provide public services
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- State-owned enterprises can be fully or partially owned by the government.
- However, the line beyond which a corporation must be considered "state-owned" is unclear, as governments can also own regular stock and have no special influence over business.
- For example, in 2007 the Chinese Investment Corporation agreed to acquire a 10% interest in the global investment bank Morgan Stanley, but it is unlikely that this would qualify the latter as a government-owned corporation.
- The term government-linked company (GLC) is sometimes used to refer to private or public corporate entities in which an existing government owns a stake through a holding company.
- There are multiple ways of defining GLCs, depending on the proportion of the corporate entity a government owns.
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- A corporate bond is issued by a corporation seeking to raise money in order to expand its business.
- A corporate bond is issued by a corporation seeking to raise money in order to expand the business.
- (The term commercial paper is sometimes used for instruments with a shorter maturity period. ) Sometimes, corporate bond is used in reference to all bonds with the exception of those issued by governments in their own currencies.
- Subordinated debt has a lower priority than the issuer's other bonds and ranks below the liquidator, government tax authorities, and senior debt holders in the hierarchy of creditors.
- A corporate bond is issued by a corporation seeking to raise money in order to expand its business.
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- A charter is a legal document from government that creates the corporation.By law, the corporation becomes an independent legal entity with rights similar to a person.A state government approves corporate charters in the United States.For example, several corporations choose the State of Delaware because the state charges the lowest fees to incorporate.
- A corporation has three parties: stockholders, board of directors, and executive officers.Stockholders own the corporation, and they usually meet once a year to vote for the board of directors, and one share equals one vote.Consequently, the majority shareholder dominates the board of directors, and therefore, controls the corporation.Of course, a majority shareholder could be another corporation.Next, the board of directors sets corporate policy, declares dividends, and selects the president and executive officers.Executive officers operate the daily business of the corporation.
- A corporation has limited liability.Stockholders own the corporation, and they are not liable for a corporation's debt.If a corporation fails, subsequently, the stockholders only lose their investment, the amount of common stock that they had purchased.
- Stockholders do not have a mutual agency relationship, where the stockholders cannot bind a corporation to contracts.Stockholders have no say in the daily operation of the corporation even though they own the corporation.
- Corporations have two disadvantages.First, government heavily regulates corporations.Corporations file many reports with government because corporations can expand into many countries, markets, and industries.Corporations may encourage regulations because bureaucratic red tape creates barriers to entry.Thus, new companies experience troubles entering the market with complex and arduous regulations.Second, government imposes taxes twice on corporations.Corporations pay taxes from their profits.Then stockholders receive profit from the corporation as dividends, and the dividends become income to the stockholder that a government also taxes.
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- Historically, corporations were created by a charter granted by government .
- Today, corporations are usually registered with the state, province, or national government, and regulated by the laws enacted by that government.
- Generally, a corporation files articles of incorporation with the government, laying out the general nature of the corporation, the amount of stock it is authorized to issue, and the names and addresses of directors.
- Once the articles are approved, the corporation's directors meet to create bylaws that govern the internal functions of the corporation, such as meeting procedures and officer positions.
- If a corporation operates outside its home state, it is often required to register with other governments as a foreign corporation, and is almost always subject to the laws of its host state pertaining to employment, crimes, contracts, civil actions, and the like.
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- Incorporation is the formation of a new corporation.
- The corporation may be a business, a nonprofit organization, a sports club, or a government of a new city or town.
- Some state laws are particularly corporate-friendly.
- Also, they can own shares in other corporations and receive corporate dividends 80 percent tax-free.
- Credit rating: Regardless of an owner's personal credit scores, a corporation can acquire its own credit rating, and build a separate credit history by applying for and using corporate credit.
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- In many countries, corporate profits are taxed at a corporate tax rate, and dividends paid to shareholders are taxed at a separate rate -- double taxation.
- Suppose the government taxes corporate profits at 30%, then the corporation has to pay $300,000 in taxes.
- It is decided that $500,000 will be distributed as dividends and the dividend tax is 10%, so you will lose a further $50,000 to the government when you file your personal taxes.
- In many countries, corporate profits are taxed at a corporate tax rate, and dividends paid to shareholders are taxed at a separate rate.
- The shareholders must then report the income or loss on their own individual income tax returns.
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- The legal and historic roots of the modern corporation reach well back into the eighteenth century, but it was in the Industrial Revolution of the nineteenth century that this truly extraordinary form of human organization came into its own and, the twentieth century, became the dominant economic force on earth.
- As well, however, consider its fearsome prospects vis-à-vis its lack of accountability, its deficit of democratic governance, its often-uncivilized competitive engagement with all other sectors of society, not to mention its transcendence of both national sovereignty and legal jurisdiction.
- Corporate ethics is the ethics of corporate social responsibility (CSR), not corporate personal responsibility.
- Corporations are creatures of law and public policy, they are cultural creations; as such, they have unique cultures of their own.
- How the humans who work and manage these organizations maintain their own integrity within the Utilitarian cultures of the multinational corporation is a chapter of history we are only beginning to write.
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- Shareholders of a modern business corporation have limited liability for the corporation's debts and obligations.
- When a person owns shares in a corporation, the losses cannot exceed the amount invested in the shares, which is called limited liability.
- This enables corporations to socialize their costs.
- However, some jurisdictions also permit another type of corporation, in which shareholders' liability is unlimited, for example the unlimited liability corporation in two provinces of Canada, and the unlimited company in the United Kingdom.
- However, a corporation can be dissolved by a government authority, putting an end to its existence as a legal entity.
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- Shareholders, on the other hand, are individuals or institutions that legally own shares of stock in a corporation.
- The chief goal of current corporate governance is to eliminate instances when shareholders have conflicts of interest with one another.
- Another important goal is to evaluate whether a corporate governance system hampers or improves the efficiency of an organization.
- Research of this type is particularly focused on how corporate governance impacts the welfare of shareholders.
- Advocates of governance typically encourage corporations to respect shareholder rights, and to help shareholders learn how and where to exercise those rights.