if a state owned firm is sold through the stock market, the organisation becomes?
ECONOMICS
WAEC 2017
if a state owned firm is sold through the stock market, the organisation becomes?
- A. partnership
- B. private company
- C. public limited company
- D. public corporation
Correct Answer: C. public limited company
Explanation
A state-owned enterprise (SOE) is a business enterprise where the government or state has significant control through full, majority, or significant minority ownership. Defining characteristics of SOEs are their distinct legal form and operation in commercial affairs and activities. When a state owned stocks are traded in the stock exchange, they become a public limited company.
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