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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