A 2015 study of hospitals, power plants, and water utilities found that government-owned and operated companies were more likely than private companies to violate health and safety laws. Possible explanations for this include the following, except

A) Government-owned companies may have difficulty getting taxpayers and politicians to approve the funding needed to improve their facilities.

B) The health and safety laws appear to be applied much more leniently against government-owned companies than against private companies.

C) Government-owned companies tend to be run by less qualified and less competent managers than the private companies.

D) Government-owned companies are under less pressure to comply with the laws, because fines for violations are often delayed or even avoided.

Question

Kellen Hester

Business

7 July, 07:46

A 2015 study of hospitals, power plants, and water utilities found that government-owned and operated companies were more likely than private companies to violate health and safety laws. Possible explanations for this include the following, except

A) Government-owned companies may have difficulty getting taxpayers and politicians to approve the funding needed to improve their facilities.

B) The health and safety laws appear to be applied much more leniently against government-owned companies than against private companies.

C) Government-owned companies tend to be run by less qualified and less competent managers than the private companies.

D) Government-owned companies are under less pressure to comply with the laws, because fines for violations are often delayed or even avoided.

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Answers (1)

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Charlie Holland · Answer 1

Possible explanations for this include the following, except "government-owned companies tend to be run by less qualified and less competent managers than the private companies".

Option: C

Explanation:

According to a study of reports of plants controlled under the Clean Air Act and the Safe Drinking Water Act from 2001-2011, publicly owned facilities are less likely to face fines or other penalties for violations than those owned and operated by private firms. The reasons given by different experts were like higher regulatory compliance costs, as they often have to go through political processes to raise the money required to upgrade their facilities. And consumers or taxpayers who protest to higher rates and have the political power to block them could face backlashes.