Legal Structure

Question 1

Limited liability

Answer 1

PLC’s, Ltd’s, lower risk, the owners are classified as being separate from the business

Question 2

Unlimited liability

Answer 2

owners are legally responsible for business debts, if the business goes under they may lose some of their personal possessions. when this type of business fails, its bankruptcy

Question 3

Private limited company

Answer 3

A small to medium-sized business that is owned by
shareholders (usually family and friends) and is
identified by the words ‘Limited’ or ‘Ltd’ in its name.

Question 4

Public limited company

Answer 4

Public Limited Company
A large business that must have a minimum of
£50,000 in share capital and for which shares are
freely available to the public. It is identified by the
words ‘public limited’ or ‘Plc’ in its name.