A State-owned Company (Leaving Cert Business): Flashcards
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Practise the cards
10 cards from this deck
State-owned company definition
State-owned company definition
Enterprise wholly/partially owned by Irish government
Nationalisation definition
Nationalisation definition
Government takes over and runs a business
Privatisation definition
Privatisation definition
Government sells state-owned company to private investors
Primary goal of state-owned companies
Primary goal of state-owned companies
Not profit; providing public service
Nationalisation benefit: Public Interest
Nationalisation benefit: Public Interest
Prioritise public welfare over profit
Nationalisation benefit: Infrastructure
Nationalisation benefit: Infrastructure
Can lead to significant investment in infrastructure
Nationalisation disadvantage: Inefficiency cause
Nationalisation disadvantage: Inefficiency cause
No competition pressure; become inefficient & less innovative
Nationalisation disadvantage: Political Interference
Nationalisation disadvantage: Political Interference
Decisions influenced by political considerations
Nationalisation disadvantage: Financial impact
Nationalisation disadvantage: Financial impact
Require substantial government funding
Irish Rail financial support
Irish Rail financial support
Receives government subsidy yearly to cover operations