Recent

  • Show all results for ""

🎧 New: AI-Generated Podcasts Turn your study notes into engaging audio conversations. Learn more

Public Enterprises in the Philippines
34 Questions
0 Views

Public Enterprises in the Philippines

Created by
@WellEducatedEiffelTower

Podcast Beta

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is a Government-Owned and Controlled Corporation (GOCC)?

  • A corporation owned entirely by foreign investors
  • A private corporation with government funding
  • A corporation with majority government ownership (correct)
  • A non-profit organization established for community service

    • What does Article XII, Section 16 of the 1987 Constitution state regarding GOCCs?

  • They may be created for the common good, subject to economic viability. (correct)
  • They should operate without government intervention.
  • They can be established solely for profit.
  • They must be privately funded and operated.

    • As reported by the Commission on Audit in August 2010, how many GOCCs were operational in the Philippines?

  • 604 (correct)
  • 446
  • 700
  • 500

    • How are GOCCs grouped according to their nature and functions?

    <p>Into three clusters: financial, public utilities, and social/cultural/scientific</p> Signup and view all the answers

    What type of entities fall under Cluster B of GOCCs?

    <p>Public utilities and trade-related entities</p> Signup and view all the answers

    What is a characteristic of a Government-Owned and Controlled Corporation (GOCC)?

    <p>It has a separate legal status.</p> Signup and view all the answers

    Which of the following is NOT a form of GOCC?

    <p>Private Limited Companies</p> Signup and view all the answers

    What role do GOCCs play in promoting economic development?

    <p>Address market failures.</p> Signup and view all the answers

    Which statement best describes the ownership of GOCCs?

    <p>They must be owned at least fifty-one percent by the government.</p> Signup and view all the answers

    In which sector did GOCCs find their traditional roles?

    <p>Utilities and transportation.</p> Signup and view all the answers

    What change has been observed regarding the growth of GOCCs in recent decades?

    <p>A rapid expansion in various sectors.</p> Signup and view all the answers

    What was the average gross value added in manufacturing for GOCCs from 1975 to 1984?

    <p>1%</p> Signup and view all the answers

    Which of the following is NOT a characteristic of a GOCC?

    <p>Non-profit orientation.</p> Signup and view all the answers

    What is a primary concern that governments have regarding foreign-owned enterprises?

    <p>Their interest in strategic economic sectors</p> Signup and view all the answers

    What might trigger government takeover of private industries?

    <p>Bankruptcy of major private industries</p> Signup and view all the answers

    Which organization provides research and policy recommendations to legislators in the Philippine Senate?

    <p>Senate Economic Planning Office (SEPO)</p> Signup and view all the answers

    Under what circumstance might the government be involved in providing goods and services?

    <p>When the private sector cannot meet essential needs</p> Signup and view all the answers

    What is one reason a government might create bias in favor of a disadvantaged sector?

    <p>To ensure fair distribution of essential staples</p> Signup and view all the answers

    What overarching theme drives the government's interest in controlling strategic sectors of the economy?

    <p>National security and economic stability</p> Signup and view all the answers

    What critical infrastructure might the government take responsibility for developing?

    <p>Large infrastructure like roads and ports</p> Signup and view all the answers

    Which of the following is NOT a reason for government intervention in economic sectors?

    <p>Increasing competition among businesses</p> Signup and view all the answers

    Which of the following best defines a public enterprise?

    <p>A business engaged in the sale of goods and services, owned or controlled by public authority.</p> Signup and view all the answers

    What term is officially used in the Philippines for public corporations?

    <p>Government Owned or Controlled Corporations (GOCCs)</p> Signup and view all the answers

    Which aspect is NOT typically associated with the public side of a public enterprise?

    <p>Private Ownership</p> Signup and view all the answers

    What is one of the key components on the enterprise side of public enterprises according to the content?

    <p>Provision of Goods and Services</p> Signup and view all the answers

    Which of the following is true about the definition of a corporation as per the Revised Corporation Code?

    <p>A corporation is an artificial being created by law with rights and attributes granted by law.</p> Signup and view all the answers

    What differentiates a local enterprise from a public enterprise in the context provided?

    <p>Local enterprises are specifically owned and operated by Local Government Units.</p> Signup and view all the answers

    Which of the following is NOT a characteristic outlined for public enterprises?

    <p>Private Accountability</p> Signup and view all the answers

    Which of the following best captures the concept of 'public accountability' in public enterprises?

    <p>Accountability to a governing body and the public for actions and decisions.</p> Signup and view all the answers

    What is one of the main reasons for government intervention in markets?

    <p>To protect public interest</p> Signup and view all the answers

    What defines a Government-owned and controlled corporation (GOCC)?

    <p>A corporation chartered through a special law or majority-owned by the government</p> Signup and view all the answers

    Which statement reflects a characteristic of natural monopolies?

    <p>They require government regulation to ensure consumer protection</p> Signup and view all the answers

    What idea is the government intervention based upon?

    <p>The belief that market failures do exist</p> Signup and view all the answers

    How did Executive Order No. 64 of 1993 expand the definition of GOCC?

    <p>It provided a broader definition beyond just stock corporations</p> Signup and view all the answers

    Study Notes

    Public Enterprise Definition

    • A commercial, financial, industrial, agricultural, or promotional undertaking, wholly or majority-owned by a public authority, selling goods/services, and with recordable balance sheets and profit/loss accounts (ICPE definition).
    • Mendoza (1990) expands on the "public" (public interest, ownership, control, and accountability) and "enterprise" (organization, decision-making, goods/services provision, marketing, and investment/return) aspects.

    Public Enterprises in the Philippines

    • Officially termed "Government Owned or Controlled Corporations" (GOCCs) per the 1973 Constitution.
    • Also referred to as government corporations, public corporations, state-owned enterprises, and parastatal corporations.
    • Includes GOCCs and Local Government Unit (LGU)-owned enterprises (LEEs).

    Corporations

    • Artificial beings created by law, possessing the right of succession, and powers/attributes/properties authorized by law or incidental to their existence (Republic Act No. 11232).

    GOCCs

    • Agencies organized as stock or non-stock corporations, performing governmental or proprietary functions relating to public needs, and government-owned (wholly or >51% for stock corporations).
    • Forms include Government Instrumentalities with Corporate Power (GICP), Government Corporate Entities (GCE), Government Financial Institutions (GFI), and GOCC subsidiaries.

    GOCC Characteristics

    • Government business enterprise, ownership, management, and control.
    • Service-motivated, autonomous, publicly accountable, with separate legal status and continued existence.

    GOCC Role in Economic Development and Social Equity

    • Addressing market failures.
    • Providing essential services.
    • Redistributing wealth.
    • Promoting inclusive growth.

    GOCC Growth

    • Rapid growth in number and size observed in developing countries over recent decades.
    • Initially in utilities (electricity, gas, water), transport, and communication, now also in manufacturing, construction, finance, services, natural resources, and agriculture.

    GOCC Control

    • Government seeks national control over "strategic sectors" (defense, etc.) and foreign-owned enterprises.
    • Other reasons include private industry bankruptcy and ideological motivations.

    Senate Economic Planning Office (SEPO) Role

    • Provides research, analysis, and policy recommendations to legislators.
    • Justifications for GOCCs include: addressing unmet private sector needs (essential services, infrastructure), supporting disadvantaged sectors, spurring strategic development, and controlling natural monopolies.

    Additional Thoughts on GOCCs

    • Acknowledges market failures justifying government intervention.
    • Utilizes the corporate structure as an efficient means of managing government assets.
    • Presidential Decree No. 2029 and Executive Order No. 64 (1993) define GOCCs, focusing on government ownership (directly or indirectly) of a majority of capital stock.
    • The 1987 Constitution allows GOCC creation for the common good, subject to economic viability.
    • As of August 2010, the Commission on Audit (COA) reported 604 GOCCs (446 operational water districts), categorized into three clusters based on functions (financial, utilities/industrial, and social/cultural).

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Related Documents

    BPA124 LESSON I & II.pdf

    Description

    This quiz explores the concept of public enterprise, focusing on its definitions, characteristics, and the specific framework of government-owned or controlled corporations in the Philippines. Delve into the roles and responsibilities of these entities as described in the 1973 Constitution.

    More Quizzes Like This

    Statutory Corporations Quiz
    5 questions

    Statutory Corporations Quiz: Test Your Knowledge

    UserReplaceableAntigorite avatar
    UserReplaceableAntigorite
    The Role of Resource Reallocation in Social and Economic Advantages
    5 questions

    The Role of Resource Reallocation in Social and Economic Advantages

    VeritableGyrolite avatar
    VeritableGyrolite
    Economía y Empresas Públicas en el Estado
    24 questions

    Economía y Empresas Públicas en el Estado

    AchievableSocialRealism avatar
    AchievableSocialRealism
    Public Enterprises Overview
    8 questions

    Public Enterprises Overview

    FreshLeaningTowerOfPisa8189 avatar
    FreshLeaningTowerOfPisa8189
    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser