The business risks of a public corporation are borne ultimately________

Analyze the question: It asks who ultimately bears the business risks (losses) of a public corporation, such as NNPC, PHCN/NEPA, or the Nigerian Ports Authority.

Explain the concept: A public corporation is a business owned and financed by the government. It is set up by an Act of the National Assembly or a decree, and its funds usually come from government allocations (subventions) and from its own revenue.

Unlike a private company, it has no shareholders who risk their personal investment. If the corporation makes a loss, the government usually steps in with subsidies, bailouts, or grants. That money comes from public revenue, which is mainly collected from taxes.

Step-by-step solution:

1. Option A: the government. The government is the owner and the first to answer for losses. But it has no money of its own. It spends what it collects from the public, so it is the immediate bearer, not the ultimate one.
2. Option B: the treasury. The treasury is just the government's account where public funds are kept and paid out. It is a channel, not the final bearer.
3. Option C: the rate payers. Rates are local government levies on property. They are not the source of funding for national public corporations.
4. Option D: the tax payers. Government bailouts and subsidies are funded from taxes paid by citizens and businesses. So the burden finally falls on them.

Answer: The word "ultimately" is the key. Losses move from the corporation to the government, then to the treasury, and finally to the people whose taxes fill the treasury.

Correct option: D (by the tax payers)

Exam tip: When you see "ultimately" or "finally" in a question about who bears a cost in a public enterprise, trace the money back to its source. For public bodies, that source is almost always the taxpayer. Remember: Government spends, but taxpayers pay.