a) A limited liability company has a corporate legal identity, and its ownership is divided into a number of shares. Discuss the significance of this in the following situations.

Question

i) The company makes a profit.

ii) The company makes a loss.

b) Three people are working together as business partners writing software used in the film industry. The people are working in a partnership, as defined by the Partnership Act.
i) There is a problem with the software. A customer makes a claim for financial damages because of that problem. How would the issue of joint liability apply and how is this different compared with a limited liability company?
ii) Describe a problem that occurs if a person wants to leave the partnership.

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