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 KCSE business studies paper 2 revision questions and answers set 6

Explain five differences between a parastatal and a co-operative society

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Answer Text:
-Parastatal is formed under the act of the parliament while co-operative is formed under the act of co-perative society act
-Parastatal is managed by a board of directors appointed by the state while co-perative is managed by a
management committee elected by members.
-Parastatal is formed to offer essential goods and services to the public while a co-operative offers services to the members
-A parastatal is owned by the state/government while co-operative is owned by the members.
-A parastatal initial capital comes from the government
while the capital for co-operative comes from members.
-A parastatal profits go to the state while those for a co-operative is shared among members.