Question

reasons for privatizng public corporations

Answer 1

A public company may choose to go private for a number of reasons. An acquisition can create significant financial gain for shareholders and CEOs, while the reduced regulatory and reporting requirements private companies face can free up time and money to focus on long-term goals. Because there are advantages and disadvantages to going private as well as short- and long-term issues to consider, companies must carefully weigh their options before making a decision. Let's take a look at the factors that companies must factor in to the equation.
Advantages of Being PublicBeing a public company has its advantages and disadvantages. On the one hand, investors who hold stock in such companies typically have a liquid asset; buying and selling shares of public companies is relatively easy to do. However, there are also tremendous regulatory, administrative, financial reporting and corporate governance bylaws to comply with. These activities can shift management's focus away from operating and growing a company and toward compliance with and adherence to government regulations .
For instance, the Sarbanes-Oxley Act of 2002 (SOX) imposes many compliance and administrative rules on public companies. A byproduct of the Enron and Worldcom corporate failures in 2001-2002, SOX requires all levels of publicly traded companies to implement and execute internal controls. The most contentious part of SOX is Section 404, which requires the implementation, documentation and testing of internal controls over financial reporting at all levels of the organization. (For more on the regulations that govern public companies, see Cooking The Books 101 and Policing The Securities Market: An Overview Of The SEC.)

Answer 2

to increase revenue for the government through taxation,to also improve quality of goods