WAEC 2016 Government · Question 5
Public corporations are established to
Options
- A.make maximum profits
- B.help businessmen
- C.provide employment for defeated politicians
- D.provide utility services to the public at minimal cost
Answer: D. provide utility services to the public at minimal cost
Explanation written with AI and checked against the answer key
Analyze the question: The question asks about the main purpose of public corporations (also called parastatals) in Government.
Concept: A public corporation is a business organization owned and financed by the government and set up by an Act of Parliament or a decree. Examples in Nigeria include NEPA/PHCN (electricity), NNPC (petroleum), the Nigerian Ports Authority, NITEL (telecommunications), and the Nigerian Railway Corporation.
Their main objectives are:
- To provide essential goods and services (utilities such as water, electricity and transport) to citizens
- To provide these services at affordable or subsidized prices, since service matters more than profit
- To create employment
- To help develop the economy by running key sectors that private investors may avoid because they are capital-intensive or less profitable
Step-by-step evaluation of the options:
- A. Make maximum profits. Wrong. Profit is a private company's main goal. Public corporations put service first, and many run at a loss or break even.
- B. Help businessmen. Wrong. They serve the general public, not a particular business group.
- C. Provide employment for defeated politicians. Wrong. This is a criticism sometimes made of political appointments, not the reason they are established.
- D. Provide utility services to the public at minimal cost. Correct. This matches the main purpose of public corporations: delivering essential services like electricity, water and transport at affordable rates.
Answer: D
Exam tip: In Government questions on public corporations, link them with the words "service," "public welfare," and "affordable." If an option says "maximum profit," it usually describes private enterprise, so you can eliminate it quickly.
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