Question

In 2008 and 2009, under the Obama administration, the United States government initiated a large-scale economic bailout of the banking and auto industries. The government invested enormous amounts of money and, as a result, became the majority shareholder in some corporations. According to the text, this means that the United States is what?

Answer 1

Answer:

majority stakeholder

Explanation:

The main reasons for the formation of joint-stock companies some percentage of the state in its capital:

- the joint-stock form makes it possible in the future, without any organizational changes, to throw out a block of shares on the market for the full or partial privatization of such joint-stock companies and attract additional investments from the market, and not from the state budget;

- the form of joint-stock companies, by definition, implies broad economic independence. In a joint-stock company with any percentage of the state’s participation in its capital, even with a 100% formal owner of the property, the joint-stock company itself, and not the state is formal owner of the property. Economic independence is a condition for the high commercialization of its activities;

- corporatization involves the transformation of pre-existing organizational structures and competencies of governing bodies of a legal entity.