Commerce SSS2 First Term

WEEK 6

Public Enterprise

Performance Objectives

The student should be able to:

      1. State the reasons for government ownership.

     2. Enumerate the advantage and disadvantages.

Content

Reasons for government  ownership of public enterprises

1. High capital requirement: Public enterprise usually requires a heavy capital outlay, which may not be affordable by private enterprises.

2. Generation of revenue: Public enterprise help the government to generate the revenue needed to finance other government projects.

3. 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.