Limited Companies Flashcards
1
Q
Limited companies
A
A limited company is a business that is owned by shareholders and controlled by directors
The profits are paid to the shareholders and are called dividends
The owners of limited companies have limited liability
This means that if the company fails, the most that shareholders lose is what they have paid into the shares, they do not need to contribute any more money to pay the company’s debts
There are two types of limited company:
Private limited company and public limited company
