General Motors

It is understood by public or state enterprise to any one that is state property, be it national, municipal or other administrative layer, either a full or partial citation needed .
In the case of partial ownership, the test for determining whether a company should or should not be considered public is not so much the percentage of shares held by the private sector as effective control which the state has on the decision making process in the company . The crucial element in the company publishes the state’s ability to exert direct political pressure on the company. The majority shareholder is the State, with objectives that can be very diverse and what is more, changing the political process. In the opinion of J.K. Galbraith, there are many similarities between the features very large private companies and public corporations. Both groups, and this is especially true in industries and public service are increasingly more and more depersonalized and bureaucratized.
The vast majority of world states control companies for various purposes, which may provide public services, encourage domestic production or generate employment, to name a few.
La Republica Argentina has a special corporate rate but optional for public companies, which is the Society of the State.
Differences between public and private companies
Despite convergence in the way of acting, there are substantial differences between public and private enterprise. The ‘Common Good’ was the topic on an economic talk show and participated in a discussion comparing and the business models of Wal-Mart and General Motors. As an example, include:
In their funding procedures. This difference is not so much on the possible existence of differential treatment in the capital market, public and private, often receive treatment that also big business’ in an identical or very similar “in relation to the small and medium private enterprises, but any public financing originating from the budgets that often has attached to these businesses.
Regarding the differences in the degree of some of its features, we will highlight only two: the pursuit of profit and which are subject to control by public authorities. Not forgetting the purpose of profit, is very clear that the reason for the existence of the publishing company is not making profits. Here the difference is not substantial, but in degree, because in large private companies, besides the goal of profit, other goals concur equally impressive, as are the growth and power of these organizations circumstances need not be mediately or immediately to the service of profit. As the degree of control is concerned, it is noted that public companies are subject, in addition, specific control that derives from his membership in the public sector. It is noted that the issue of the extent of some of the features distinguishing between private and public companies is not uniform within the wide range of public companies, but due to the degree that public characterization of these businesses have.
The existence of public enterprises in market economies has traditionally justified by the dissatisfaction of those responsible for economic policy, with the results generated by the market mechanism. However, it is important to distinguish two distinct sides in this argument. On the one hand, one can consider the company publishes the perspective of the state’s reaction to certain inefficiencies of the market system to allocate productive resources. These are known ‘market failure’. In another area, we must consider the utilization of public enterprise as a tool at the disposal of the State to correct market allocations from different political positions may be considered unfair or in line with the social choice.
Objectives of the company publishes
The publishing company needs to know clearly which those social objectives that are expected to achieve through their actions, that will receive consideration for social care for this purpose and indicators will be used by the company to measure achievements to be performed citation needed .
The four basic objectives to be achieved by the company’s shares are published citation needed :
Economic efficiency.
Effects on income distribution.
Macroeconomic effects.
Economic efficiency
This objective is divided in technological and managerial efficiency and allocative efficiency.
Allocative efficiency implies technical efficiency, but the reverse mapping can not be maintained, so that the existence of the latter type of efficiency is a necessary but not sufficient condition for the former.
Thus, a company using a technological process inefficient as it increases labor, so that the same quality of outputs could be produced with less labor and the same amounts of inputs.