ltd and plc Flashcards
1
Q
is private limited ltd or plc
A
ltd
2
Q
is public limited ltd or plc
A
plc
3
Q
advantages of ltd
A
- limited liability
- being incorporated, can continue trading after a shareholder dies - unlike a partnership
- for someone to buy shares all the other shareholders have to agree so owners keep a lot of control and how many people get to share the profits.
4
Q
advantages of plc
A
- much more capital raised helping the company to expand and diversify
- limited liability and incorporated
5
Q
disadvantages of plc
A
- had to get shareholders to agree how the business is run - each shareholder has very little say unless owns lots of shares
- accounts made public so competitors can see if the business is struggling
6
Q
disadvantages of ltd
A
- more expensive to set up
- legally obligated to publish accounts every year although not made public
7
Q
private limited means that shares can only……………
A
be sold if all shareholders agree
8
Q
public means shares are traded on………….
A
stock exchange and can be bought or sold by anyone, firms often become public to expand
9
Q
limited liability definition
A
if the company goes bust its the company that is liable not the owners.
10
Q
limited companies are owned by…
A
shareholders
