Theory question 105
Public Corporations(a) Define public corporation.
(b) Give five reasons for setting up a public corporation in your country.
Show the model answer
Model answer
(a) A public corporation is a business enterprise set up by an act of the legislature (or decree), owned and financed by government, managed by a board, to provide essential goods or services.
(b) Any five: provide essential services (power, water, rail) at affordable prices; services too large or risky for private investors; prevent private monopoly and exploitation; generate revenue for government; create employment; national security in strategic industries; speed up economic development; even distribution of amenities across the country.
Explanation
Compare your answer with the model answer: it lists the points a full-mark answer needs.