A State Owned Company Flashcards
What is the main goal of state-owned companies?
Provide public service
What is nationalisation?
When the government takes over and starts to run a business
What is privatisation?
When the government sells a state-owned company to private investors
What is a benefit of nationalisation?
Public welfare prioritised
What is a disadvantage of nationalisation?
Political interference
What is one benefit of state-owned companies?
They provide stability and consistent services, unaffected by market fluctuations.
What is a disadvantage of state-owned companies?
They may become inefficient without competition.
What does nationalisation ensure?
That key industries remain under domestic control.
What is one example of a state-owned company in Ireland?
Irish Rail
What issue does Irish Rail face due to nationalisation?
Inefficiency and lack of innovation
