Week 3 summary sheet questions

Who is responsible for appointing the people who run a public corporation?

• The employees of the corporation

• The government

• The private sector

• The shareholders

What is the main objective of most public corporations?

• To make a profit

• To provide a public service

• To sue and enter into contracts

• To produce annual reports

What happens to the profits made by a public corporation?

• They are distributed among the employees

• They are reinvested in the business or handed over to the government

• They are given to charity

• They are used to pay off the corporation's debts

Why might a government take control of a failing industry?

• To avoid wasteful duplication

• To maintain control of strategic industries

• To save jobs and prevent mass unemployment

• To fill gaps left by the private sector

What is one of the main reasons for public ownership of certain services?

• To ensure competition in the market

• To avoid wasteful duplication

• To increase the government's revenue

• To privatize the service eventually

What is one of the reasons against the public ownership of businesses mentioned in the text?

• Public corporations are always more efficient than private companies.

• Public corporations are often criticized for their low productivity and inefficiency.

• Public corporations are easier to manage due to their small size.

• Public corporations do not require government subsidies.

What is a consequence of the lack of competition for public corporations?

• They are forced to be more efficient.

• They have to worry about going bust.

• They do not have to worry about being efficient.

• They are more reliable and punctual.

What is privatisation?

• The process of increasing government control over corporations.

• The transfer of public corporations to the private sector.

• The act of creating new public corporations.

• The sale of private corporations to the government.

Which of the following is a form of privatisation?

• Increasing regulations on private sector competition.

• The sale of public corporations to the private sector.

• The government taking over private corporations.

• Public corporations expanding their workforce.

What was the effect of deregulation in the UK's communications market?

• It prevented companies like Sky from competing with British Telecom.

• It allowed only British Telecom to provide communications services.

• It allowed companies like Sky to compete with British Telecom.

• It nationalized the communications market.