US Federal Government : The Causes Of Government Corporations

In the early years of the United States the government was able to function and operate all of its affairs rather easily. This would change as more and more technology was invented and the industry rapidly grew throughout the nation. In the early 1800's services provided by the government were limited to the areas of defense, foreign affairs,mail service, commerce between the colonies and money. These few service with the exception of national defense required only a few thousand government employees. However, in the late 1800's the nation began to rapidly grow economically the number of government employees had to grow as well to maintain the services that were being provided in the early years. Farmers were asking for government

Corporate governance in itself has no single definition but common principles which it should follow. For example in 1994 the most agreed term for corporate governance was “the process of supervision and control intended to ensure that the company’s management acts in accordance with the interest of shareholders” (Parkinson, 1994)1. Corporate governance code is not a direct set of rules but a self-regulated framework which businesses choose to follow. This code has continued to change in the past 20 years in accordance with what is happening in the business world. For example the Enron scandal caused reform in corporate governance with the Higgs Report which corrected the issues which were necessary. Although it does not quickly fix problems, it gives a better framework to

5. What advantages help explain why virtually all large companies are organized as C corporations?

The U.S. Government Accountability Office (GAO) is an independent, nonpartisan agency that works for Congress (GAO 2014). The GAO falls under the legislative branch of the federal government and works extensively with the executive branch, or more specifically, the Department of the Treasury and the Office of Management and Budget.

Prior to the financial crisis, the overall responsibility for financial oversight was divided among several different agencies. These agencies and their “varying rules and standards led to certain entities not being regulated at all, with others subject to less oversight than their peer

There has been a lot of fuss over big business influencing the government in the United States lately. Now there is no doubt that the business elite have some influence on politics. It can even be traced back to the early 1900’s, when “the People’s Party had disintegrated, but many writers and activists have continued to echo the Populists’ central thesis: that the U.S. democratic political system is in fact dominated by business elites” (). Although there are countless arguments to go against this idea, the questions still comes up today: Is government dominated by big business? Political Scientist G. William Domhoff believes that government is dominated by big business. More specifically, Domhoff believes that owners and top-level managers in income-producing properties are not only dominant power figures in the US, but they also have inordinate influence in the federal government (). Another political scientist however, Sheldon Kamieniecki, believes otherwise. He states that businesses do not really get involved in policies that affect them; and even when they do, their success rate at influencing policies is not consistent. In fact, he believes that other factions have more influence on government policies ().

As details of the Enron scandal surfaced public outrage grew, calling for action, accountability and consequences. Corporate governance began receiving renewed interest. Corporate governance is a multi-faceted subject that sets forth the rules and responsibilities of the relationship between the corporation and its stakeholders (Cross & Miller, 2012). This includes the company’s officers and management team, the board of directors, and the organizations shareholders.

In the Enron case, The Securities and Exchange Commission (SEC) and Congress conducted an investigation into Enron's collapse. The authorities re-examined the roles of corporate watchdogs, including corporate boards of directors, auditors, investment banks, credit rating agencies and lawyers. It could be that the watchdogs had too tight relations with the company's executives. That is why no one questioned the Enron's aggressive accounting strategies. To prevent such collapses, someone needs to look into the possible conflict of interest. The dilemma is that auditors should perform in the interests of the investors, but they are paid by the audited company, which makes it more difficult for them to exercise tough decisions. The auditors should not perform some particular consulting services for the firms that they audit. Another belief is that there should be more severe consequences for those committing financial crimes and causing fall of the companies.

Within the department, the Bureau of Corporations was empowered to investigate and report on illegal activities of

As working for the Turkish Treasury in the Directorate General of State-Owned Enterprises, which mostly deals with the overseeing of the state-owned enterprises (SOEs) and also responsible for the ownership function of the SOEs in the country, this report will be researching the United States (US) experience with the government corporations regarding to their financial management and governance mechanisms.

Should corporate governance be regulated by legislation as well as the organization and to what degree? The most important formal legislation pertaining to this issue was the Sarbanes-Oxley Act of 2002, which insisted there be a system of requirements to reduce conflicts of interest and improve corporate controls.

The roles that government play in the global work environment is that in today’s world majority of businesses need to register with a state government to function. Corporations need a charter, and other forms of businesses, such as limited liability companies or partnerships, need other forms of registration. The purpose of this registration is usually to define the financial accountability the owners of the company have. It limits their risk to the amount they have invested in that particular organization. Registration also allows the government to monitor companies to execute its other functions in the business world.

A government corporation is an agency of the federal government, established by Congress to perform a public purpose, which provides a market-oriented product or service and is intended to produce revenue that meets or approximates its expenditures. Government corporations receive most of, but not all of, their funds from the users. (cite) They are also exempt from many budgetary regulations so consumers of the products the corporation provides, rather than taxpayers become the main source of income.(cite)

The party-state monitoring of the state-owned enterprise in China remains a puzzle to most of the observers as the party state aims at creating the actual market economy. The neo-liberal privatization of the SOEs should run by entirely independent legal individuals with some anonymity to operate on the commercial basis. However, various factors influence the corporate governance in China with the critical pillars including respect for the stakeholders in the enterprise and legal protection of disclosure and transparency. Irrespective of the essence of corporate government transparency, the irony remains that the government is operated without anyone checking what is being done. The importance of the business-government in China has become a heated topic of discussion in the policy, academic and business decision makers throughout the country. The corporate governance is closely linked to the ongoing economic reforms in most of the state-owned enterprises, as well as the development of financial and security markets (Leng, 2009). The country has experienced new revisions regarding safety and company laws that focus more on government including the shareholder 's fiduciary duties and voting rights. The above rules significantly determine the roles that the corporate directors and the board play to ensure a balance of responsibilities between the directors and officers.

they communicate this in transparency and make sure that the message is sustainable. As a