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Reasons for government ownership of public enterprises. - SS1 Commerce Past Questions and Answers - page 1

1

Why does the government own public enterprises?

A

To promote social welfare

B

To promote social welfare

C

To encourage competition

correct option: b

To promote social welfare

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2

Which sector may have public enterprises to ensure national security?

A

Defense

B

Agriculture

C

Tourism

correct option: a

Defense

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3

Why might the government establish public enterprises in underserved regions?

A

To prioritize profitability

B

To address market failures

C

To reduce competition

correct option: b

To address market failures

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4

What is a primary objective of government-owned enterprises?

A

Economic development

B

Maximizing shareholder value

C

Ensuring private ownership

correct option: a

Economic development

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5

What is one benefit of government ownership of natural resource-related enterprises?

A

Lower resource extraction rates

B

Increased private sector control

C

Better resource management and distribution

correct option: c

Better resource management and distribution

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6

Why does the government own public enterprises?

To promote social welfare.

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7

Why might the government establish public enterprises in underserved regions?

To address market failures.

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