19 Analyse the disadvantages of a public corporation business. [6]

Ch 4 Types of business organisation

Moderators: Salman Khalid, Syed Mustafa Ali

Abbas17
Trade Titan
Posts: 84
Joined: Mon Oct 23, 2023 3:19 pm

Re: 19 Analyse the disadvantages of a public corporation business. [6]

Post by Abbas17 »

(KN) no private shareholders to insist on high profits and efficiency
(AN) due to this profit motive of the business might not be as powerful as in private sector businesses,
(AN+) hence due to this the business may move it's focus from profit and earn lesser revenue which will negatively impact it.

(KN) government can use these businesses for political reasons
(AN) due to this, it prevents public corporations to operate like other profit making businesses,
(AN+) which hence discourages workers and shareholders motivation within a business and they may be forced to withdraw from the business due to this.
Post Reply

Return to “Ch 4 Types of business organisation”