Limited Companies Flashcards
1
Q
business owned by . . .
A
shareholders; not involved in day-to-day running of business
2
Q
unlimited or limited liability?
A
limited
3
Q
limited liability
A
person only legally responsible for amount of investment
4
Q
incorporated
A
business’ cash/ property/ debt is separate from shareholders
5
Q
? to get loans
A
easier
6
Q
private
A
ownership of shares are restricted, all must agree on who can become a shareholder
7
Q
pros private
A
retained control on how business is managed
8
Q
cons private
A
upfront fee, must publish accounts to the public
9
Q
public
A
shares are sold on stock exchange
10
Q
pros public
A
easier to raise finance/ capital as more investment, lower risk
11
Q
cons public
A
owner has less control, anyone can gain majority control, must publish accounts
