Question

Highlight five reasons why the government may find it necessary to participate in business activities.

Answer 1

1. To provide goods and services that are too sensitive to be left in the hands of the private sector.
2. To attract foreign investment by initiating major development projects
3. To prevent exploitation of consumers by private business people especially in provision of essential goods and services
4. To provide essential goods and services which private individuals are not able to due to large amount of capital required.
5. To stimulate economic development in the country
6. To ensure equitable distribution of essential goods and services
7. To provide unprofitable but essential goods and services