A government without intervention is a government that is setup to fail. One of the main ideas of government intervention is to create trade. If there is no government intervention markets fail to take into account externalities and are likely to under-produce public goods. For example, governments can subsidise and in turn provide goods with positive externalities. Another main idea of government intervention is that greater equality is available. When someone redistribute income and wealth it will increase the equality …show more content…
This means they can not regulate what goes on in such industry. One of the major reasons why companies want to stay private are because they do not have to follow the excessive amounts of requirements for reporting. A private industry is not subjected to Securities and Exchange commission or the SEC, which states they have to have a third-party audit them and or require annual reporting. Also, reporting for a private industry does not happen. They do not have to disclose important information to the public. Private companies can not raise capital but they do have access through outer sources like bank financing. They produce relationships with their banks and this is a major