Mastergp
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They are things that warrant government participation or ownership of business enterprise they include the following:
High capital requirements:
Public corporation usually require heavy capital outlay, which may not be affordable by private enterprises.
Generation of revenue:
Publics corporations help the government to generate revenue needed to finance other government projects.
To prevent foreign dominance of the economy:
Government can venture into some enterprises in order to prevent or reduce foreign control of the economy by foreign investors.
To provide infrastructural facilities:
Government establishes certain enterprises to provide infrastructural facilities like roads and railways on which returns may not be forthcoming and which may, therefore, not attract investment by the private sector.
To prevent monopolistic tendencies:
Public corporations are set up to prevent monopolistic tendencies resulting in very high prices or charges if undertaken by private enterprises.
High capital requirements:
Public corporation usually require heavy capital outlay, which may not be affordable by private enterprises.
Generation of revenue:
Publics corporations help the government to generate revenue needed to finance other government projects.
To prevent foreign dominance of the economy:
Government can venture into some enterprises in order to prevent or reduce foreign control of the economy by foreign investors.
To provide infrastructural facilities:
Government establishes certain enterprises to provide infrastructural facilities like roads and railways on which returns may not be forthcoming and which may, therefore, not attract investment by the private sector.
To prevent monopolistic tendencies:
Public corporations are set up to prevent monopolistic tendencies resulting in very high prices or charges if undertaken by private enterprises.