Choosing The Right Legal Structure ( People In Business)

Question 1

P.L.C

Answer 1

Public . limited . company

Question 2

L.T.D

Answer 2

Private . Limited . Company

Question 3

P.L.C Facts

Answer 3

• FLAOT (putting a percentage of the business on the stock market)
• The public can own/buy shares on the stock exchange
• Limited liability (loose what you put into the company)
• Large business/ organisation
• Risk of takeover

Question 4

L.TD Facts

Answer 4

• Buying shares is only for people within the company OR you can be invited
• limited liability
• The shareholders are seen as separate from the company

Question 5

How LTD is formed

Answer 5

Memorandum of association

Articles of association

Certificate of incorporation

Question 6

Benefits of using franchising to grow

Answer 6

• Allow others to open more stores
• get someone else to do all the work
• get a percentage of the profit called royalties