PLEASE HELP Economics!

[Turbo93]

This question is confusing me in May/June 2007 paper 2
it says : Partnerships are owned by only two people while public companies are owned by the
government.

a)Explain whether the above definitions are correct.
So i open the marking scheme and it says Partnerships are not necessarily two people, they may consist of all the people
working in the organisation. And about the Public companies it says : Public companies are not owned by the government. Public
companies issue shares and are owned by the private sector.
Am confused , Public is owned by the government and private by individuals , but it says public companies are not owned by the governemt :S

Any feedbacks?

 

[CaptainDanger]

Help!

 

[crazzzy_mooney]

Public companies are owned by people. They are on the stock exchange owned by shareholders which are people!!!!public is owned by people also the difference is public is shared between people but private cannot be shared and have only private sharing between relaitives or friends and public is on a large scale and shares are sold locally on stock exchange or market!!!!

Its simple :wink: if u dnt get it refer to the textbook

 

[crazzzy_mooney]

so the second definition is incorrect

 

[xIshtar]

Both definitions are incorrect, partnerships are organisations which are owned and run by between 2 and 20 people. A PLC or Public Limited Company is owned by it's shareholders, ie, the private individuals who invested money in the business through the purchase of shares. So a PLC is not owned by the government, it is owned by private individuals who wish to make a profit.

 

[devilsretribution]

However if its a Public SECTOR organization than it is owned by the government but left to itself for day to day running