Commerce WASSCE (SC), 2018

Question 3

 

  1. Differentiate between public enterprises and public companies under the following headings:

    1. formation;
    2. ownership;
    3. purpose;
    4. management;
    5. sources of fund.

 

Observation

This question was attempted by many candidates. However some of them did not handled it well. Whereas the candidates were expected to differentiate under the listed heading, the pairing in most cases did not match. Some who did not answer in tabular form did not use conjunctions such as while to show the difference. This resulted in low scores for these candidates.
Also, some candidates mixed up public enterprises as private limited liability company and compared it with public companies under the listed heading.  

The expected responses are.

3.         Differences between public enterprises and public companies
           


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 payers money.

It is provided through sales of shares, debentures and credit facilities.