WAEC Commerce 2018 Theory — Question 3

Model answer

Public enterprise is owned by the taxpayer/government; established to maximize the welfare of the populace; no tax is charged; guarantee is usually limited; it is mostly a monopoly; headed by government appointees; unit of ownership cannot be determined; cannot have a subsidiary. Public company is owned by private individuals; established to maximize profit for the owners; it pays tax; in most cases limited by trust; it is most competitive; headed by vote of shareholders; unit of ownership is determined by the number of shares held by each person; it can have a subsidiary.