(a) Distinguish between a public company and a public corporation (b) What are the problems of public corporations in your country?

Assessment: WAEC SSCE - Economics - 2005 (Essay) Subject: Economics

Question 1 Report

(a) Distinguish between a public company and a public corporation
(b) What are the problems of public corporations in your country?

Answer

Public company (public limited company)	Public corporation (statutory corporation)
A private-sector business owned by shareholders who buy its shares, which are freely transferable on the stock exchange.	A state-owned enterprise set up by government to provide essential goods or services.
Formed by registration under the Companies Act (memorandum and articles of association).	Established by a special Act of Parliament (statute) which defines its powers.
Its main aim is to make profit for the shareholders.	Its main aim is public service/welfare rather than maximum profit.
Capital is raised through the sale of shares and debentures to the public.	Capital is provided mainly by government from public funds.

Public company (public limited company)	Public corporation (statutory corporation)
A private-sector business owned by shareholders who buy its shares, which are freely transferable on the stock exchange.	A state-owned enterprise set up by government to provide essential goods or services.
Formed by registration under the Companies Act (memorandum and articles of association).	Established by a special Act of Parliament (statute) which defines its powers.
Its main aim is to make profit for the shareholders.	Its main aim is public service/welfare rather than maximum profit.
Capital is raised through the sale of shares and debentures to the public.	Capital is provided mainly by government from public funds.

Related Questions

Everything you need to excel in your exams