Firms and Industry – Private and Public Companies

Economics S.S.S 1 Second Term

WEEK 3

Firms and Industry – Private and Public Companies

Performance Objectives

Student should be able to:

1. Explain the meaning and characteristics of private and public companies.
2. Identify the distinction between private and public companies.

Content                                                             

Private limited company

Private limited company is held by a few individuals privately having a separate legal entity. In this, the shareholders cannot trade shares publicly. It restricts its number of shares to 50. Shareholders cannot sell their shares without the approval of other shareholders. It is a company which restricts the right of its members to transfer its shares and it doesn’t send the invitation to the public for subscription of its shares. Characteristics of private limited company…