Public corporation is financed with

1. Analyze the question The question asks how a public corporation (a government-owned enterprise such as NEPA/PHCN, NNPC, or the Nigerian Ports Authority) is financed.

2. Explain the concept A public corporation is a business set up and owned by the government through an Act or decree. Its main purpose is to provide essential goods and services to the public, not only to make profit. Because the government owns it, its capital comes mainly from government funds, which are drawn from public revenue such as taxes. It may also get government loans and subventions, and earn some income from its own sales or services.

3. Step-by-step solution

• A. Capital raised from shareholders: This describes a public limited company (PLC), where the general public buys shares. Not a public corporation.
• B. Tax payer's money: Government funds come from taxes and other public revenue, so this fits a public corporation.
• C. Capital raised from stock exchange: This also describes a PLC that sells shares on the stock exchange.
• D. Capital contributed by owners: This fits sole proprietorships and partnerships, where private owners contribute capital.

4. Answer The correct option is B. Tax payer's money.

5. Exam tip Use this memory trick: "Public corporation = Public money." If the question mentions shares, shareholders, or the stock exchange, think public limited company. If it mentions government ownership, think public corporation, which is financed from government funds (taxes).