1. No flexibility in operations:
A noted disadvantage in such corporations is the absence of flexibility in operation.
2. Misuse of power:
There are greater chances of misuse of power and authority by the superiors.
3. Lack of efficiency:
As the competition would be nil or at the minimum, the efficiency in operations would noticeably be at its least.
4. Not easy to alter activities:
The power and functions cannot be easily changed unless the Act itself is changed at the Parliament or the State Legislature.
5. Political interference:
Though political influence would be minimum, these corporations are not totally free from the influence of political parties and leaders.