Question

Explain the characteristics of joint sector enterprises.

Answer 1

1. Mixed ownership: The government, private entrepreneurs and the investing public jointly own a joint sector enterprise.
2. Combined management: A joint sector enterprise is managed and controlled by representatives or nominees of the government, private business owners, and the public. Such enterprises are typically organised in the form of a company.
3. Share capital: In a joint sector enterprise, the government, private entrepreneurs, and the public hold 26%, 25%, and 49% of the capital, respectively. The purpose is to combine the financial resources and technical expertise of both the state and private individuals.