Public companies as business operating entities

In conditions of contemporary market economy public companies appear as a corrector of its negative effects but also as an instrument for economic and social functions of the state. Public companies exist nearly in all forms of social and economic order. Depending on the form, we distinguish the role, organization, representation, legal status and business of the public companies. The public companies may not be basic business operating entities. By their organization, purpose, business, legal status etc., they are not fit to replace private capital and classical business corporations prevailing in market economies. However, numerous reasons speak in favor of their survival in certain fields and with clearly defined objectives. The purpose of existence of the public companies is not primarily in profit-making, but in ensuring continuing satisfaction of general interest. Countries in transaction, and so is ours, set as one of the major objectives privatization of public companies and their reduction to the least possible extent. However, all of them, and Serbia as well, clearly expressed orientation to retain public companies in fields having special importance for satisfaction of general needs. The areas in which the public companies primarily exist are non-profit businesses, which have, nevertheless, key importance for life of citizens, i.e. satisfaction of their daily needs. The public utilities businesses are one of the best examples. Also, in certain areas amount of price of goods and services may not exceed certain lever, since in the contrary they would not be available to wider strata of population, and by their nature they are required and irreplaceable. Such level is ensured in several ways, e.g. by states subsidies, premium systems but also through retaining i.e. establishing of public companies in that field. The state very often opts to retain monopoly in strategic points of reproduction such as energy, telecommunications, certain sectors in transportation, military industry etc. Even though they would be able to function with majority private capital, the state retains its influence in order to be able to implement through them its multiple economic and social functions.