Explain five advantages of government involvement in business. (10 marks)

Advantages of government involvement in business

​Advantages of government involvement in business include:

1. Provision of essential services/good at fair prices/affordable/reasonable.
2. Provision of large capital investment - undertake ventures that require large sums which private sectors may not be able to raise / without which development would be minimal.
3. Protection of citizens - from exploitation/malpractice by businesses.
4. Stimulation of economic development - by developing social amenities/infrastructure roads / injecting funds into economy through development projects.
5. Creation of employment - to create jobs for its citizens to earn a living/improve their standard of Living.
6. Income generation - to increase government revenue through licensing/taxation/to finance public expenditure.
7. Stabilization of the economy through regulation/market intervention.
8. Promotes equity/fairness in the distribution/use of resources.
9. Control use of resources through conservation/legislative measures / to ensure their sustainability.
10. Maintenance of law/order - for smooth operations of a country’s affairs.
11. Promotion of best practices - through encouraging adoption of ICT/good governance/social programmes/inclusivity.
12. Promotes investment in the country by creating an enabling environment.
13. Promotes country’s identity/image - through cultural programmes /branding initiatives

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