Government Corporations

Definition

These are government-owned businesses created by Congress to provide a public service that is either not being met by the private sector or is better served by a government entity.

Analogy

Think of Government Corporations like your school's cafeteria. It's owned and operated by the school (the government), but it functions like a business, providing food services (public service) to students because private restaurants can't come into the school to do so.

Related terms

Public Enterprise: A type of business organization which is owned and controlled by the state or any governmental body.

Federal Agency: A special governmental organization set up for a specific purpose such as, management of resources, financial oversight of industries, or national security issues.

Public Service Commission: A governing body in many states and municipalities that regulates utilities and other public services.