Companies in state owned

Question 1

Name of companies in state-owned

Answer 1

Ends with SOC Ltd

Question 2

Number of owners in state-owned

Answer 2

Requires 3 or more directors and 1 or more shareholders.

Its owned by the government and operates to generate a profit

Question 3

Management of companies in state-owned

Answer 3

Shareholders vote for the most competent directors and they are appointed to manage the company

Question 4

Capacity of companies in state-owned

Answer 4

Many join the company by issuing shares to the public

Question 5

Legal requirements of companies in state-owned

Answer 5

Register with the Registrar of companies by setting up the Memorandum of incorportation

Question 6

Continuity of companies in state-owned

Answer 6

Unlimited continuity

Question 7

Capital of companies in state-owned

Answer 7

The company has access to long-term capital and therefore good long term opportunities for growth

Question 8

Profit-sharing of companies in state-owned

Answer 8

Profits are shared in the form of dividends. Generate revenue to finance social programs

Question 9

Taxation

Answer 9

Pay tax on the profits of the business and declared dividends of shareholders / subject to double taxation

Question 10

Advantages of companies in state-owned

Answer 10

Limited liability
Legal personality and continuity
Supporting of government

Question 11

Disadvantages of companies in state-owned

Answer 11

Difficult to raise capital because stock is limited
Rely on subsidies from the government
Losses must be paid by the taxpayer