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SS1: ECONOMICS - 2ND TERM

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  1. Firms & Industry | Week 1
    4 Topics
  2. Firms & Industry (Business Organisation) | Week 2
    5 Topics
    |
    1 Quiz
  3. Population Theory I | Week 3
    3 Topics
  4. Population Theory II | Week 4
    3 Topics
  5. Population | Week 5
    3 Topics
  6. Population Distribution | Week 6
    4 Topics
  7. Population Census | Week 7
    3 Topics
    |
    1 Quiz
  8. Labour Market | Week 8
    3 Topics
    |
    1 Quiz
  9. The Nature of the Nigerian Economy | Week 9
    4 Topics
    |
    1 Quiz
  10. Agriculture | Week 10
    4 Topics
    |
    1 Quiz



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Topic Content:

  • Definition of Public Corporations
  • Characteristics of Public Corporations
  • Objectives of Public Corporations
  • Problems of Public Corporations
  • Advantages of Public Corporations
  • Disadvantages of Public Corporations

A public corporation is a business organisation that is owned and run by the government. This is a unit that is established to provide services to the public and not for profit purposes. The business unit that is controlled or owned by the local government is called a municipal enterprise.

It is established by the act of parliament or decree. Public corporation is supervised by the federal government and controlled by boards of directors appointed by the government

 

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Question 1

Highlight five characteristics of Public Limited Liability.

Answer:

  1. The minimum number that can form a public company is seven while the maximum remains infinite.
  2. A public limited company is a legal entity. It can sue and be sued in its own name.
  3. It enjoys a continuous existence. The death of some shareholders cannot affect the business.
  4. It has limited liability. The liability of shareholders is limited to the amount contributed to the company.
  5. The accounts of the company must be audited and published annually.
  6. The shares of a public company can easily be transferred.
  7. Capital is raised through the issue of shares publicly.
  8. It must follow some special formalities before registration.

Question 2

Differentiate between a public corporation and a private limited liability company.

Answer:

Feature Public Corporation Private limited company
i. Ownership           The government. Shareholders.
ii. Formation Acts of parliament. Incorporation.
iii. Control Government appoints boards of directors. Board of directors is elected by shareholders.
iv. Capital Government through grants. Provided through shares and debentures.
v. Aim Provision of essential services. To make profit.

Question 3

For the Formation of a partnership, business partners must have a written document that will guide the business. State the partnership deeds.

Answer:

  1. How capital is to be contributed by each partner.
  2. How profits and losses are to be shared.
  3. How a new partner may be admitted.
  4. The liability of each partner.
  5. The name of the business.
  6. Whether partners are entitled to remuneration for acting in the partnership business.
  7. Whether interest is to be allowed on capital and at what rate.
  8. Its obligation and how matters should be decided.
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