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46. Businesses are as likely as are governments to establish large bureaucracies, but bureaucracy is far more damaging to a business than it is to a government. Discuss the extent to which you agree or disagree with the opinion expressed above. Support your point of view with reasons and/or examples from your own experience, observations, or reading. Contrary to the statements premise, my view is that businesses are less likely than government to establish large bureaucracies, because businesses know that they are more vulnerable than government to damage resulting from bureaucratic inefficiencies. My position is well supported by common sense and by observation. First, public administrators lack the financial incentives to avoid bureaucratic waste. In contrast, inefficiencies in a private corporation will reduce profits, inflicting damage in the form of job cuts, diminishing common-stock value, and reducing employee compensation. These are ample incentives for the private firm to minimize bureaucratic waste. Second, there is almost no accountability among government bureaucrats. The electorates voting power is too indirect to motivate mid-level administrators, whose salaries and jobs rarely depend on political elections. In contrast, private corporations must pay strict attention to efficiency, since their shareholders hold an immediate power to sell their stock, thereby driving down the companys market value. | 
