What are the benefits of Public Corporations?

The benefits of Public Corporation include the following:

Public corporations are generally large, they can benefit from economies of scale, including cheaper pricing and better quality of service to large scale population and geographical areas.

Public corporations are wholly owned by the government. There is clear chain of command in administration and operations. Planning and coordination among various departments of the public corporation is easier. They have advantages of limited monopoly, since the government can take complete control over certain items if required for public welfare. Public corporations are abided by laws, rules and acts, charter of duties and motives of public welfare. Public corporations can also create policies and procedures to promote public welfare.

Public corporations have an autonomous set-up that makes it free from unwanted political and bureaucratic interference. It means there is great flexibility in terms of a public corporation’s operations. Decisions in a public corporation can be made rather quickly and effectively since bureaucracy is reduced. Social security, security of service makes employees of Public Corporation to perform their duties without any pressure or influence. 

Since, public corporation are free to compete with private corporations, hence they can also raise funds from public by issuing bonds, set their profit ratio and pay perks to their employees. Private funding makes public corporations independent from government resources and they can generate their own resources for further expansion and business operations.