Explanation

(a) Limited liability means debt responsibility is limited to capital invested into the business in the event of the collapse or liquidation of the business

(b) The problems of statutory public corporations are 
(i) frequent government or political interference 
(ii) high embezzlement propensity of officials (iii) delay in policy and decision making 
(iv) negative attitude of some of the workers. (v) production inefficiency 
(vi) favoritism in appointment of officers. 
(vii) mismanagement by officials/wastage of resources

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