Public Corporations

Question 1

What are public corporations

Answer 1

They are organizations set up by law to run services or industries on behalf of the government. They are owned or controlled by the government which makes all decisions.

Question 2

Here does the government get their sources of finance from

Answer 2

Taxations

Question 3

Why do public corporations exist

Answer 3

-Provide essential services to the public
- prevent exploitation of costumers
-protect jobs
- create employment
-maintain key industries

Question 4

Examples

Answer 4

Education
Safety
Post/mail services
Transport
Protection
Electricity

Question 5

Advantages

Answer 5

-Provide products to benefit the society
-Can make a loss in the short-term. If they make a loss their services keep operating if the benefits to the whole society is great enough
-Availability and stability of finance

Question 6

Disadvantages

Answer 6

-slow and inefficient
-decisions based on political decisions rather than efficiency