State/Government Owned Business Flashcards
1
Q
State/government owned business
A
Businesses that are under control by the government
2
Q
What does the government do to help the business?
A
Identifies the aims and objectives and appoints a board of directors to run it
3
Q
Most appropriate for…
A
Large organisations that provide vital product or service to the population and may not exist without the government
4
Q
Advantages (3)
A
Government will ensure that the company will survive
Inefficient to have more than one product or service
Support businesses that need help
5
Q
Disadvantages (3)
A
Business may be inefficient due to the dis-economies of scale and higher prices may be charged to customers
May not prioritise cost control
Maybe used for political gain
