Do you mean public bureaucracy and politicians make bad financial decisions or commit fraud? Because humans are humans, and businesses and families seem to have a similar rate of incompetents and white collar criminals... who cycle in and out of their respective systems via the usual channels.
You forgot D) The money collected for the service was not handled correctly.
The "All public bureaucracies are inefficient" fallacy. So not necessarily the case. In fact, quite often government offices and programs seem to run on spit, love and unpaid overtime. And IF a public entity is inefficient, it can be 14.9% inefficient before it costs more than a private service, which has an obligation to make a 15% profit per year according to capitalist convention.
You forgot E) The people or entity delivering the service have not done so in a efficient and economical way.
Fortunate you get to vote it out then, and write to your congresscritter and sign pettions while you wait for its death. Voting gives you more power over public processes you don't like, compared with private businesses you don't like. You'll have to get up a major public boycott to take out a private business.
You forget F) The service doesn't work (It doesn't solve the problem it was supposed to and/or makes the existing problem worse.
Edited, Aug 8th 2011 8:05am by Aripyanfar