Lesson 5- Public Corporations

Question 1

Define public sector

Answer 1

Known as the government sector or the state

Question 2

Define public corporations

Answer 2

Organizations in the public sector are owned, managed and controlled by the government

Question 3

Features of public corporations (5)

Answer 3

1.State owned
2. Created by law
3. Incorporated
4. State funded
5. Provide public services

Question 4

Reasons why government owns public corporations (4)

Answer 4

1. Avoid duplication
2. Maintain control
3. Save jobs
4. Fill the gaps left by the private sector

Question 5

Reasons again government provision (4)

Answer 5

1. Costly
2. Inefficiency
3. Political Interference
   4.Difficult to control

Question 6

Define privatisation

Answer 6

It is when state owned assets are sold to the private sector

Question 7

Advantages of privatization (4)

Answer 7

1. Service provided will be better
2. Quality of the service will enhance
3. The government can earn a lump sump of money from the proceeds and also earn from the taxes on profit
4. Reduce unemployment

Question 8

Disadvantages of Privatization?

Answer 8

Consumers may be exploited