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Explain five features that differentiate a public corporation from a private limited company form of a business unit
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Aug 26, 2021
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Business Studies Form 2
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anony mous
Explain five features that differentiate a public corporation from a private limited company form of a business unit
forms of business units
public corporation
private limited company
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Aug 26, 2021
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anony mous
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
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