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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