Government parastatals are principally established as instruments for implementing economic or social development programs or for supplying essential services to the people.
By the end of this topic, you should be able to:
Business is any activity carried out by an individual or an organization aiming at making a profit. It could be in offering services or producing goods. Businesses are organized in recognizable units. These units are grouped on the basis of ownership structures or the status of legal control. Business units vary in size, some are small and others are very large.
Business units can also be referred to as business organizations. Every unit is unique in terms of ownership, formation, and management. Business units can be found in all sectors of the economy. They can be owned by one or more people and have different characteristics. These units can provide either a good or service.
Examples of business units include sole proprietorships, co-operatives, partnerships, companies, parastatals, and public corporations. This lesson is focused on parastatals.
Parastatal is a legal entity created by a government to undertake commercial activities on behalf of an owner government. Their legal status varies from being a part of the government to stock companies with a state as a regular stockholder. Parastatals are fully owned and managed by the government. It is formed by an act of Parliament
Advantages
Disadvantages
