(a) Distinguish between a public company and a public corporation (b) What are the problems of public corporations in your country?

Answer Details

(a) Public company versus public corporation:

(b) Problems of public corporations:

• Inefficiency and bureaucracy: Red tape and lack of the profit motive lead to waste and poor service.
• Political interference: Government appoints board members and dictates policy, often on political rather than economic grounds.
• Inadequate funding and heavy losses: Reliance on government subventions and frequent losses starve them of capital.
• Corruption and mismanagement: Embezzlement, over-staffing and poor management reduce productivity, and monopoly status removes the pressure to improve.