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