Definition - What does Government-Sponsored Enterprise mean?
Government-sponsored enterprise can be defined as a corporate entity formed legally by the United States government. Such enterprises are privately owned and operate as per the directions from the board of directors. The members of the BOD are mostly appointed by the private owners.
Justipedia explains Government-Sponsored Enterprise
A government-sponsored enterprise doesn’t have the powers that are purely associated with the government and state. Government-sponsored enterprises must also have employees that are not paid by the government but by the enterprise itself.