Final answer:
The authorization for a company to use the corporate format from the government is known as incorporation. It allows the business to be recognized as a separate legal entity. The theme of government contracts you've mentioned is related to privatization, not the incorporation process.
Step-by-step explanation:
The authorization from the federal or provincial/territorial government for a company to use the corporate format is known as incorporation. When a company is granted this authorization, it is recognized as a legal entity that is separate from its owners and has its own rights and responsibilities. This process of incorporation allows businesses to operate, enter into contracts, and own property in its corporate name, apart from the individuals who own it.
While you've referenced government contracts, which relate to a different aspect of governmental interaction with private entities, incorporation is more about the formation of the company itself. The granting of these contracts is separate from the incorporation process but is indeed a form of privatization where private companies provide services that were traditionally handled by the public sector, growing significantly under the Clinton and Bush administrations and exemplified during the Iraq War.