Commerce Paper 2, May/June 2014  
Questions: 1 2 3 4 5 6 7 8 Main
General Comments

question 1

  1. Compare a public limited company with partnership under the following headings:

    1. Formation;
    2. Ownership and control;
    3. Source of capital;
    4. Liability;
    5. Dissolution.



  1. Many candidates answered the question and their performance was good.  Some of the candidates had difficulty in comparison of public limited  liability company and partnership under “Formation and Dissolution”. The required answer is as follows:

    Public Limited Company


    Formation:  Formation of a company is expensive and cumbersome as more documents are required in order to secure certificate of incorporation.  It is registered under the Company Act

    Dissolution:  the death of a shareholder or member of Board of Directors does not bring the business to an end.  It is by voluntary winding up or court order

    Formation:  It is less expensive and requires less documentation.  It is registered under Partnership Act.


    Dissolution:  Exit or death of a partner, disagreement among partners, introduction of a partner brings the business to an end.  A court order may also bring it to an end.

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