Cambridge O Level Business Studies · Syllabus 7115 · Understanding Business Activity
Public Corporation
What is Public Corporation?
A public-sector organisation owned or controlled by government and run by an appointed board, typically providing a service considered strategically or socially important such as national broadcasting, rail or postal services. It is financed mainly by government and may pursue public-service objectives rather than profit.
This definition is part of the Understanding Business Activity chapter in Cambridge O Level Business Studies.
Public Corporation in context
Business activity is the combining of scarce resources — land, labour, capital and enterprise — to produce goods or services that satisfy human needs and wants. Because resources are scarce and wants are not, every choice carries an opportunity cost: the next best alternative forgone. Cambridge O Level Business Studies (7115) Chapter 1 covers why business activity exists, how a business is classified by economic sector and by ownership sector, how size and growth are measured, the forms of business organisation from sole trader to public corporation and what each means for ownership, control, finance and risk, and the objectives that businesses set and that their stakeholders judge them by.
Common mistakes with Public Corporation
- “A public limited company is owned by the government.” Correct A public limited company is a private-sector business owned by shareholders. A public corporation is the public-sector organisation.
Questions students ask about Public Corporation
What is the difference between a public limited company and a public corporation?
A public limited company is a private-sector business owned by shareholders, whose shares may be offered for sale to the general public; it is not owned by the government. A public corporation is a public-sector organisation owned or controlled by government and run by an appointed board, financed mainly by government and often pursuing public-service objectives rather than profit. The word "public" means different things in the two names, and confusing them is a common error.