(a) What is a public limited liability company (b) state and explain any five features...

Explanation

(a) Public limited company is an artificial person created by law to carry on business with the aim of profit maximization. Public limited company is a separate legal entity with right to sue and be sued.

(b) Features distinguishing a public liability company from partnership

Public liability company/ Partnership

1- membership: No upper limit to the number of shareholders/ limited to 20 people

2- perpetual existence: There is continuous existence/ The death of a partner can bring the partnership to an end

3- ownership and control: Shareholders do not take part in the management of thr company/ partners can take part in running the affairs of the partnership

4- Legal entity: company is a separate legal entity/ it is not a separate legal entity

5- Limited liability: It has limited liability/ It has unlimited liability

6- Raising of capital: Company can issue shares to the public/ partners can only raise capital through partners contribution

7- Formation: company secures incorporation by filling the article of association/ partnership is formed by signing the deed of partnership