(5) Public corporations Flashcards
1
Q
What are the features of public corporations?
A
- State owned
- Created by law
- Incorporated business
- State funded
- Provide public services
- Public accountability
2
Q
What are the reasons for public corporations?
A
- They avoid wasteful duplications
- They save jobs
- They fill the gap left by the private sector
- They serve unprofitable regions
3
Q
What are the reasons against public corporations?
A
- They are a cost to the government
- They are inefficient
- Political inteference
4
Q
What is privatisation?
A
It is the process of transferring public sector businesses to the private sector.
5
Q
How can privatization happen?
A
- By selling public corporations to the private sectors
- Deregulation (lifting laws that prevent private sector interference.
6
Q
Why does privatisation happen?
A
- To generate income
- To reduce inefficiency
- To reduce political interference
