Knowra State-owned enterprise State-owned enterprise A business entity in which a government owns all or part of the equity and exercises ownership rights over its operations and assets. It may operate commercially while also pursuing public-policy goals.
Corporate governance : The systems by which organizations are directed, monitored, and held accountable. Boards and oversight rules translate government ownership into decisions about management and performance.
Privatization : The transfer of ownership or control of an asset or enterprise from government to private parties. It reverses state ownership and can change an enterprise's objectives and accountability.
Public utility : A provider of essential network services such as electricity, water, or gas, often subject to regulation. Utilities are common settings for state ownership because networks require large, coordinated investment.
Fiscal risk : The possibility that unexpected events will worsen a government's finances or debt position. Enterprise losses and guarantees can become public liabilities even when they sit outside the budget.
Électricité de France : A French electricity company majority-owned by the French state. Its public ownership illustrates government involvement in a national energy system.
State ownership : Government ownership of assets, companies, or equity stakes. This broader arrangement defines the government's ownership rights in an enterprise.
Private company : A company whose equity is not publicly traded and is held by private owners. Private ownership places residual control and returns with non-government owners.
National oil company : An oil or gas company owned or controlled by a national government. These firms let governments participate directly in extraction, revenues, and energy policy.
Soft budget constraint : A condition in which an organization expects continued financial support when it cannot meet its obligations. A state-owned firm may take greater risks if it expects a government rescue.
Saudi Aramco : A Saudi Arabian petroleum and natural gas company majority-owned by the Saudi state. It exemplifies state ownership in a major resource-producing company.
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