TASK 1.2 Theory: Concepts relating to companies Work in pairs for this Task. Discuss the following questions and then share your answers with the rest of the class 1.2.1 What is meant by the concept of limited liability' and 'separate legal identity' in con- nection with companies? Why could the concept of limited liability not be allowed in the cases of businesses operating as doctors, lawyers or accountants? 1.2.2 1.2.3 Why are big companies important to a country? 12.4 How does the concept of limited liability assist big companies to exist in a country? 1.2.5 Why is it important for companies to contain the word LIMITED' in their names? 1.2.6 Why does a company pay Income Tax, yet a sole proprietor or partnership does not? of ownership from control' in respect of a company? sess? Explain why each of these characteristics is important. 1.2.7 What role does a director of a company fulfil, and what is meant by the 'separation 1.2.8 In your opinion, what personal characteristics should a director of a company pos- New Era Accounting 20 Grade 12 1.2.9 What are the advantages of a company over a partnership? 1.2.10 What are the advantages of a partnership over a company? 1.2.11 Why is it important for all companies to be registered with the Companies and Intellectual Properties Commission