Which of the following is a reason for failure of public corporations?

A. legal requirement
B. inadequate funding
C. political stability
D. lack of competition

Correct Answer: Option B

B. inadequate funding

Explanation

Public sector failure occurs when government intervention in the economy leads to an inefficient allocation of resources and leads to an overall decline in economic welfare. Government failure can occur for various reasons, such as. Lack of profit incentives in the public sector.