(a) Distinguish between a public company and a public corporation
(b) What are the problems of public corporations in your country?
Explanation
(a)
| Public companies | Public corporation | |
| Ownership | Shareholders | Government |
| Sources of finance | Through shares | Government subvention |
| Formation | Shareholders | Act of parliament |
| Liabilities | Limited | Unlimited |
Or
A public limited liability company is a company which has legal entity. it can raise capital by selling shares to the public. Tbe liability of its owners is limited to the amount of shares they invest in the company. Its shareholders should be at least sevem and has no upper limit while public corporation is formed by an act of parliament and its from the capital market. A public corporation has no share holder and it is publicly owned.
(b) The problems of statutory Public Corporations are:
(i) Frequent government or political interference is very high
(ii) High embezzlement propensity of the officials is also a factor.
(iii) Delay In policy and decision making can create big problem
(iv) Poor attitude to work of officials and workers of the corporation
(v) Production inefficiency and wastage of resources.
(v) Favoritism In appointment of officers i e. tribalism nepotism
(vi) Inadequate funding particularly when government cannot generate sufficient revenue.