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explain The following are merits and demerits of government involvement in business: Merits Protection of local industries from unfair competition Enables it to understand challenges faced in business Enables it to provide essential services that other businesses do not provide due to low profit or high running costs. Profit realized is used in provision of services such as education and health services Creates employment for citizens through the businesses Equips business people with business skills Demerits Some regulations discourage investors Sometimes it drains public resources Loss making businesses are a burden to taxpayers Political appointments as commercial attaches or managers of government business leads to poor business.
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