Private Limited Companies Flashcards
1
Q
What is a Private Limited Company?
A
An incorporated business owned by shareholders that are usually family and friends. They are not traded on the stock exchange
2
Q
What tax do Private Limited Corporations pay?
A
Corporation
3
Q
What liability do Private Limited Companies have?
A
Limited
4
Q
Who owns a Private Limited Company?
A
The business is an entity itself so if something goes wrong the business is told not a specific person
5
Q
What are the advantages of owning a Private Limited Company
A
Low risk as you can’t lose possessions
More knowledge due to multiple share holders
More shareholder investment so raises more capital
