Ltd Advantages And Disadvantages

Question 1

Advantage 1

Answer 1

More capital can be raised as there can be between 1-50 shareholders

Question 2

Advantage 2

Answer 2

The company has its own legal identity

Question 3

Advantage 3

Answer 3

The business benefits from Limited liability. if the business goes bankrupt, then the owners only lose the money they invested in the business.not their personal possessions.

Question 4

Disadvantage 1

Answer 4

A sole trader who becomes an Ltd could lose some control of the business.

Question 5

Disadvantage 2

Answer 5

Shares cannot be sold to the general public therefore funds may be limited.

Question 6

Disadvantage 3

Answer 6

All companies must be registered with the Registrar of Companies.they have to share their financial information.such as the final accounts, which the public and their competitors can see.