Public Corporations Quiz

What is a public corporation?

• An organization formed and controlled by individuals

• An organization formed and/or controlled by the government

• A partnership between the government and private companies

• A private limited company

What percentage of shares must the government own for an organization to be considered a public corporation?

• 25%

• 50%

• More than 50%

• 100%

What is one of the primary reasons for the formation of public corporations?

• To make profits for private owners

• To provide essential services to the public at a cheaper price

• To promote private businesses

• To monopolize the market

Which of the following is an example of a public corporation?

• Safaricom

• Kenya Power and Lighting Company

• Equity Bank

• Barclays Bank

How are most public corporations in Kenya formed?

• Through individual ownership

• By an act of parliament

• By private companies

• Through public offerings

Who appoints the chairman and board members of a public corporation?

• The corporation itself

• The employees

• The president or respective minister

• Private investors

Which of the following is NOT a source of finance for public corporations?

• Ploughed-back profits

• Loans from financial institutions

• Government grants

• Charity donations

Which of the following is an advantage of public corporations?

• Slow decision-making process

• High operational costs

• Goods and services are provided at relatively lower prices

• Insensitivity to customer needs

Public corporations may be dissolved for which of the following reasons?

• Persistent profit-making

• Persistent loss-making

• Excessive competition

• High customer satisfaction

Which type of public corporation is formed to assist farmers in marketing their produce?

• Commercial corporations

• Research corporations

• Finance and banking corporations

• Marketing boards