What problems may a country suffer when the government becomes a major investor in business activities?

      

List the problems that a country may suffer when the government becomes a major investor in business activities.

  

Answers


Maurice
(i) Lack of accountability/ Transparency.

(ii) Unstable management/ frequent changes in their management.

(iii) Political interference leading to unethical practices.

(iv) Bureaucracy/ Red-tape leading to rigidity.

(v) Discourage investment due to unfair competition.

(vi) Poor quality goods/ services due to lack of competition.

(vii) Limited choices for consumers.

(viii) Inefficiency leading to poor productivity.

(ix) Burden to tax-payer due to continuous losses.
maurice.mutuku answered the question on July 14, 2017 at 06:39


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