In a tabular form, state the differences between public enterprise and public company.
Explanation
| No | Heading | public Enterprise |
Public company |
| 1 | Formation | It is formed by an Act of parliament |
It is incorporated by the promoters according to the company's act. |
| 2 | Ownership | It is owned by government/ general public |
It is owned by the shareholders |
| 3 | Purpose | To provide essential services to the general public |
To make profit for the shareholders |
| 4 | Management | The government appoints a Board of directors |
A Board of directors is elected by shareholders |
| 5 | Sources of funds | Provided by government through subventions, subsidies or grants/ tax payer money |
It is provided through sales of shares, debentures and credit facilities. |