CH5 - AO3

Question 1

Advantages of public corporations (6)

Answer 1

– Avoid wasteful duplication - in some industries where a natural monopoly exist
– Maintains control of strategic industries
– Saves jobs
– fill the gaps left by the private sector
– Serve unprofitable regions
– Lower prices

Question 2

Disadvantages of public corporation (5)

Answer 2

– Cost to government
– Lack of competition
– inefficiency
– Political interference
– Difficult to control