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 Form 2 Business Studies: Forms of business units lessons

Disadvantages of public corporations

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Answer Text:
Disadvantages of public corporations
-They are managed by political appointees who may not have the necessary managerial know how.
-When they make losses, they are assisted by the government and this could lead to higher taxation of individuals
-Lack of competition due to monopoly leads to inefficiency and insensitivity to customers feelings.
-Political interference may hamper efficiency in the achievement of set goals and objectives.
-Decision-making is slow and difficult because the organizations are large.
-They may lack close supervision because of their large sizes.
Public funds are wasted by keeping poorly managed public corporations


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