Question

What is the disadvantage of a public corporation?

• A. No legal entity
• B. Excessive accountability
• C. Lack of availability of managerial talent
• D. No financial autonomy

Answer 1

Answer: (B)

Excessive accountability

Excessive accountability is the disadvantage of a public corporation which means obligations of public enterprises towards fiscal and social responsibilities. There are a few more disadvantages to these Companies:

1. High Cost

2. Ownership of the business

3. Disclosure of main accounts to the public.

Thus the correct answer is B.