To a certain extent, public corporations are to considered desirable. Explain

Problems associated with public corporations

  • Poor services and low quality goods due to absence of competition
  • Wastes are encouraged since losses are financed by tax payers.
  • Poor bad business decisions are likely to be made due to political motives
  • Where rival private firms exist, they are subjected to unfair terms and conditions
  • Fear of political repercussions may lead to avoidance of risky yet important projects
  • Though inefficient, they may not be criticized openly due to fear of political influences

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