Owner Types

Question 1

Features of PLC

Answer 1

1. Can issue more shares to raise funds
2. Exists forever until it is wound up or struck off

Question 2

Features of SP

Answer 2

1. Is set up using owners personal funds.
2. Exists as long as owner is alive and wants to continue its operation.

Question 3

Features of LLP

Answer 3

1. Has access to a larger pool of funds due to contribution from the partners.
2. Continues to exist until it is wound up or struck off.

Question 4

Advantage of SP

Answer 4

Owner has total control and decision-making over the running of the business.