2014 WAEC Commerce Theory  Compare a public limited company with partnership under the following headings (a) formation: (b) Ownership...

Compare a public limited company with partnership under the following headings

(a) formation: (b) Ownership and Control: (c) Source of Capital: (d) Liability: (e) Dissolution:.

Comparison between Public Limited Companies with Partnership
		PUBLIC LIMITED COMPANY	PARTNERSHIP
A	Formation	formation of Company is expensive and cumbersome as more documents are required in order to secure Certificate of incorporation. It is registered under the company's act	Formation. it is less expensive and required less documentation. It is registered under the partnership act.
B	Ownership and control	It is owned by shareholders and controlled by board of directors elected by the share- holders	it is owned by partners who can also take part in the management of the business.
C	Source of Capital	capital may be raised through sales of Shares, Debentures, Retained profits, loans, leases.	Partnership can only raise capital through partners' contributions, loans, leases, retain earnings.
D	Liability	Liability of members is limited to their share holdings in the business	Liability of partners does not end with their capital contribution but extends to personal properties.
E	Dissolution	The death of a shareholder or member of the board of directors does not bring the business to an end. It is by voluntary winding-up or by court orders.	Exit of a partner, disagreement among partners, introduction of a new partner or death of a partner brings the business to an end.