Which of the following statements about public corporation is not true?

Analyze the question: We are asked to find the statement about a public corporation that is NOT true.

Concept: A public corporation (also called a parastatal) is a business organisation owned and controlled by the government. Examples in Nigeria include NNPC, NEPA/PHCN (now successor companies), Nigerian Ports Authority (NPA), and the Nigerian Railway Corporation.

Key features:

• It is established by an act of parliament (or a decree or edict), which spells out its powers and functions.
• It is managed by a board of directors/governing board appointed by the government.
• It usually needs huge capital, because it provides large-scale services such as power, transport, and water.
• It is financed mainly by the government through budget allocations, loans, and its own revenue. It is not financed by private individuals.

Check each option:

• A. Managed by a board of directors: True.
• B. Established by an act of parliament: True.
• C. Huge capital is needed: True.
• D. Financed mainly by private individuals: False. Funding comes mainly from the government. Private individuals financing a business through shares is a feature of a public limited company, not a public corporation.

Answer: The statement that is not true is D.

Exam tip: Remember the difference:

• Public corporation → government-owned, government-funded, created by law.
• Public limited company → owned by shareholders (private individuals), with shares sold to the public.

When you see "private individuals" or "shareholders" in a question about public corporations, it is usually the wrong statement.