Limited Company Flashcards
1
Q
What is a limited company?
A
This 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.
2
Q
What is limited liability?
A
if the company fails, the most that shareholders lose is what they have paid for their shares. They do not need to contribute any more money to pay the company’s debts.
3
Q
What are the two types of limited companies?
A
private limited company (‘Ltd’) and public limited company (‘plc’)
