A Limited Company

Question 1

Which feature defines a limited company’s liability?

Answer 1

Limited liability for shareholders

Question 2

What is required to form a limited company?

Answer 2

Create a constitution and register with the Companies Registration Office (CRO).

Question 3

What is the maximum number of shareholders a limited company can have?

Answer 3

149 shareholders

Question 4

What is the liability of shareholders in a limited company?

Answer 4

Shareholders are only liable for their initial investment.

Question 5

What is one advantage of setting up a limited company?

Answer 5

Access to capital by issuing shares

Question 6

What is one disadvantage of setting up a limited company?

Answer 6

Higher setup costs and more administrative burden

Question 7

What is the control structure in a limited company?

Answer 7

Controlled by shareholders, who elect a board of directors.

Question 8

What is a Designated Activity Company (DAC)?

Answer 8

A type of limited company set up for a specific purpose and requires a minimum of two directors.

Question 9

What is required for a DAC to operate?

Answer 9

It must operate within its designated activity and hold an Annual General Meeting (AGM) unless it has only one shareholder.

Question 10

What is an example of a Designated Activity Company (DAC)?

Answer 10

Ryanair