WAEC Commerce 1995 Theory question 101

(a) A public limited company is a business owned by shareholders (minimum of seven, now two, with no upper limit), registered under the Companies Act, with limited liability, whose shares are offered to the public and freely transferable on the stock exchange; it is a legal person separate from its owners.
(b) Any five, explained by contrast: legal personality – PLC is separate from its members and can sue and be sued, a partnership is not; liability – shareholders' liability is limited to their shares, partners (except limited partners) have unlimited liability; capital – PLC raises large capital from the public through shares and debentures, partners contribute their own capital; membership – no maximum for a PLC, a partnership has 2 to 20 members; transfer of ownership – shares freely transferable, a partner cannot transfer his share without others' consent; continuity – PLC has perpetual succession, a partnership may end on death, bankruptcy or withdrawal of a partner; management – PLC run by a board of directors elected by shareholders, partners manage the firm themselves; formation – PLC registers Memorandum and Articles and gets a certificate of incorporation and trading certificate, a partnership needs only a deed or agreement; publicity – PLC must publish audited accounts, a partnership's accounts are private.

In (b) every point should say what the PLC does and what the partnership does.