WAEC Commerce 2024 Theory — Question 2

Model answer

(a) Contents of Memorandum of Association: (i) Name of the company; (ii) Registered address of the company; (iii) Main objective of the company; (iv) The authorized shares of the company; (v) Names of the promoters of the company. Content of Articles of Association: (i) It states the structure of the company; (ii) The regulation of the company; (iii) Other objectives of the company; (iv) Structure of shares of the company; (v) Powers and duties of directors of the company. (b) Problems of public corporation: (i) Inadequate funding: most public corporations are not adequately funded, since it is not run for profit, thus there is a limit to the funding. (ii) Inefficiency: most public corporations are inefficient because the people that manage them are politically appointed. (iii) Political interference: most public corporations do not enjoy independence; politicians interfere which may affect efficiency. (iv) Poor attitude of staff to work: most workers in public corporations see the corporation as no man's business and thus are not effective at work. (v) Political instability: change of government too can affect effectiveness, efficiency and continuation of public corporation; all depend on the attitude of the government in power.