(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.