Theory question 108
Patents, Trademarks and CopyrightCommerce 2 (essay)
(a) Explain the following terms:
(i) goodwill;
(ii) patents;
(iii) trade mark;
(iv) copyright
(b) State four factors that could lead to the dissolution of a limited liability company
Show the model answer
(a)(i) Goodwill – the value of a firm's good name, reputation and customer connections, above the value of its physical assets.
(ii) Patents – exclusive rights given to an inventor to make and sell his invention for a period.
(iii) Trade mark – a registered name, symbol or design that identifies a firm's products.
(iv) Copyright – legal right of an author, artist or musician to stop others copying his work.
(b) Any four: members pass a special resolution to wind up (voluntary); inability to pay debts (insolvency); court order (compulsory liquidation); object of the company achieved or becomes illegal; fraud or illegal activities; number of members falls below the legal minimum; expiry of a fixed period; failure to start business within a year.
Dissolution can be voluntary or by court order.