i) Advantages of a Public Limited Company

• The liability of the owners of a public limited company is limited. This means that the company is seen in law as a separate person from its owners or shareholders. Thus, the owners are not normally liable for the debts and liabilities of the business, unless they have made some personal commitments.
• The shareholders of a public limited company can raise more capital than a private one by inviting the general public to subscribe for shares in the business. This option is not available to a private company.
• Shares in a public limited company are freely transferable. This means that shareholders can easily transfer their shares in a public company by trading them on the stock exchange.

(3 points for 2 marks each)
(6 marks)

ii) Corporate Social Responsibility
Corporate Social Responsibility is the continuing commitment by an organization to behave ethically and in such a way that while it seeks to maximize profits, it also contributes towards improving the quality of life of its employees as well as of the community in which it operates and society in general.
(2 marks)

iii) Examples of Social Activities A Company May Engage In

• Provision of social amenities like potable water, building of libraries, etc.
• Employment of local citizens
• Taking concrete steps to avoid environmental pollution