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Difficulty: EasyPublic Enterprises: Rationale, Features, Management, and Control

The primary objective of establishing a public corporation is to provide essential services to the public rather than to maximize profit.

Answer: Answer

Answer

The statement is true because public enterprises are set up by government acts to serve the public interest and provide social amenities rather than to maximize private profits.
Public enterprises are created by legislative acts primarily to ensure that critical public services and utilities are made available to all citizens at reasonable rates, placing social welfare ahead of profit maximization.

Step-by-Step Solution

1
Identify the primary motive behind the creation of public enterprises.
Government establishes public corporations to supply vital infrastructure and essential goods/services.
Establishing the core rationale clarifies why government intervention is needed in utility provision.
2
Differentiate public enterprise goals from private sector goals.
Unlike private enterprises which prioritize financial profit, public corporations focus on social utility and economic welfare.
This confirms that social service delivery is the main objective.

Key Concept

Rationale and Features of Public Enterprises
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Topics

Public Enterprises: Rationale, Features, Management, and Control

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