business organisations

A ZUPCO bus. Image credit bulawayo24.com ZIMSEC O Level Commerce Notes: Public Corporations/Parastatals and Public Utilities

Features

• Established by an act of parliament.
• Provides essential goods and services e.g. transport (NRZ)
• The main aim is to provide essential services at affordable prices.
• Have no profit motive.
• Are separate legal […]
  

Megawatt building. Image credit newsday.co.zw ZIMSEC O Level Commerce Notes: Advantages and disadvantages of Public corporations/ Parastatals

Advantages

• The government controls the provision of strategic products.
• Provides products at cheap prices.
• Provides employment to people.
• Reduces duplication of resources .
• Enjoy limited liability.
• Implement government policies i.e. in terms of setting the […]
  

Harare city council. Image credit financialgazette.co.zw ZIMSEC O Level Commerce Notes: Local Authorities

Local authorities

• Can be a city ( e.g. Harare City Council), rural ( e.g. Mutasa District Council) or district council.
• Are controlled by the central government.
• Owned by the local government.
• Set up to administer a […]
  

Dairibord Milk. Image credit herald.co.zw ZIMSEC O Level Commerce Notes: Reasons why Parastatals are turned into Public Limited companies (privatised)

Reasons why parastatals are converted into public limited companies.

• To reduce the burden on the taxpayer for example parastatals are often subsidised using tax-payer’s money.
• To improve efficiency of […]
  

Prospectus. Image credit docstoc.com ZIMSEC O Level Commerce Notes: Prospectus(privatised)

Prospectus

• Is prepared by founders of the company or an issuing house after the registration of a public limited company.
• Is sent for approval to the registrar of companies before members of the public are invited to subscribe for […]