Advantages of public corporations

Advantages of public corporations

  • Initial capital is readily available because it is provided by the government

  • Can afford to provide goods and services at low prices which would otherwise be expensive if they were left to the private sector.
  • Most of them produce goods and services in large quantities thereby reaping the benefits of large scale production
  • Some are monopolies. They hence enjoy the benefits of being a monopoly e.g. they do not have to incur costs advertising since there is no competition
  • They can be bailed out/assisted by the government when in financial problems
  • They have limited liability
  • Money for research and development can be made readily available by the government

  • Through corporations the government is able to remove foreign domination in the country
  • They can afford to hire qualified personnel


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