WAEC Commerce 2012 Theory question 102

(a)(i) Limited liability – members can lose only the amount they invested (unpaid on shares); their private property is safe.
(ii) Separate legal entity – the company exists in law apart from its owners; it can own property, sue and be sued in its own name.
(iii) Certificate of incorporation – document issued by the Registrar (CAC) showing the company is registered and legally exists.
(iv) Participating preference shares – preference shares that receive a fixed dividend first and also share in remaining profits after ordinary shareholders are paid.
(v) Ordinary shares (equities) – shares whose holders own the company, vote, and receive variable dividends after preference shareholders; they bear the greatest risk.
(b) Any five: provide essential services at low cost; create jobs; prevent private monopoly exploitation; undertake projects too big for private investors; promote even development; government revenue; protect strategic industries; improve standard of living.

Define each term in (a) clearly.