What is the state enterprise?

Governments need revenue for operation and business is one of the means that can be used to provide it. The company that is owned by the government and operated for profit is also a state -owned enterprise, also referred to as SOE. The characteristics that define these businesses differ from one country to another. This means that it can generally be responsible and may be responsible for other entities. These businesses are often subject to many of the same regulations and procedures as similar business, which would not be owned by the state, would be subject to. For example, a state -owned enterprise may have to obtain licensing and permission and adapt its operations in accordance with federal or local law.

Provision of inclusive definition of a state enterprise may be difficult, as each country can outline the properties of such an arrangement. For example, in some cases, SOE can only be owned partially. The Thzacons of the country can simply require the government to own the largest part. Examples of countries with state -owned enterprises include New Zealand or whoseto and southern Africa. Industry industries where this type of ownership is common include mining, public transport and postal services.

Sometimes the state -owned enterprise is developing from a government agency that has been transformed into a profitable business company. This is known as corporation. Although this happens commercial, SOE can still be operated in a way that helps to achieve government goals and goals. In other cases, the government can buy an existing corporation. This can be seen when a company that is essential for an economy or a company that employs a large number of people is experiencing financial problems.

Savings of some countries are strongly dependent on income generated by these business companies. The way these funds are distributed or used will differ from one state to another. On the contrary, SOE is not always successful, but it may not be feasible to allow the closure of the company.

In these cases, the government thatOwn the company owns, generally to provide subsidies, which are essentially the funds used to continue operation. In these cases, the government actually pays for the company to benefit from it instead. An example of when this type of action may be required is in the case of a postal service that works with a loss. In general, the country does not allow business so important because the postal service fails and closes simply because there are no profits.