Public Enterprise II
Commerce SSS2 First Term
The student should be able to:
1. State the reasons for government ownership.
2. Enumerate the advantage and disadvantages.
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.
Subscribe now to gain full access to this lesson noteTake Me There
Click here to gain access to the full notes.