Question

Explain five features that differentiate a public corporation from a private limited company form of a business unit

Answer 1

Public corporation	Private limited
Initial capital is usually provided by the government	Initial capital comes from the share holders
Established through legislation by an act of parliament	Established by promoters according to company’s act
Managed by a board of directors appointed by parliament	Managed by one or two directors elected by shareholders
Profits are issued to dividends and the government to the members	Profits are distributed to share holders in dividends
Not- profit motivated	Established to earn profits