(a) What are public corporations? (b) State any four merits of public corporations.

Explanation

(a) Public Corporations or Statutory enterprises are large-scale business units completely owned and controlled by the State.

(b) The merits of Public Corporations are:

(i) Enough capital is ensued. The government can read-ily make available capital needed for expansion.

(ii) It enjoys economies of large-scale production e.g. it can employ skilled personnel as it can afford to pay them high remunerations.

(iii) The Public Enterprises are more consumer-conscious. They protect consumers against exploitation by the private firms.

(iv) Interest of the workers is catered for and the employ-ees have great sense of security.

(v) Enjoyment of monopoly; public utilities like water sup-ply, electricity and transport can be run economically.

(vi) They are sure of continuity.

(vii) They provide employment opportunities, for the teem-ing number of the unemployed.

(viii) They act as sources of revenue for the government.