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WAEC Economics 2011 Objective — Question 16

Question 16 of 50 from the West African Examinations Council (WAEC) Economics 2011 Objective paper, with the correct answer and a full explanation.

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A firm is said to be a public joint stock company when it

  • A. A. is owned by the government
  • B. B. sells its shares to members of the publicCorrect
  • C. C. operates as a government corporation
  • D. D. is not legally recognized as a firm

Explanation

A public joint stock company can raise its capital by selling its shares to members of the public. These shareholders jointly own the business.

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