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JAMB Economics 1985 Question 22

Question 22

Business Organisations

A firm is said to be a public Joint Stock Company when it

  1. A.is owned by the government
  2. B.is operated as a public corporation
  3. C.is operated in a non-democratic fashion
  4. D.sells shares to members of the public and publishes its accounts
  5. E.is a limited liability company.
Show the answer and explanation

Answer: D (sells shares to members of the public and publishes its accounts)

Explanation

A public company offers its shares to the general public (on the stock exchange) and must publish its accounts.