ZIMSEC O Level Commerce Notes: Advantages and disadvantages of Public corporations/ Parastatals
- The government controls the provision of strategic products.
- Provides products at cheap prices.
- Provides employment to people.
- Reduces duplication of resources .
- Enjoy limited liability.
- Implement government policies i.e. in terms of setting the prices of products.
- Provide a source of income for the government thus reducing the tax burden.
- Enjoy economies of large scale operation.
- Operate at below full capacity , oftentimes at a loss.
- They are oftentimes inefficient and waste resources.
- Tend to provide poor quality products since they are monopolies e.g. ZESA and its frequent power cuts.
- There is political interference in their operation.
- They are expensive to maintain and run.
- There is a lot of bureaucracy which lead to further inefficiency.
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