Question
State four demerits of government involvement in business.
Answer
- It may scare away foreign investors
- If government is the only provider, of essential services, a monopoly may be created
- Businesses managed by political appointees may perform poorly
- Corruption and mismanagement may occur due to poor supervision
- Businesses may make losses because the main aim is to provide services
- If government is the only provider, of essential services, a monopoly may be created
- Businesses managed by political appointees may perform poorly
- Corruption and mismanagement may occur due to poor supervision
- Businesses may make losses because the main aim is to provide services
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