Private limited company Flashcards
1
Q
What is a private limited company
A
A organisation that is owned by shareholders
2
Q
What are some advantage of a private limited company
A
-They have limited liability
-Owner can retain control
-Limited companies are able to raise money by borrowing
3
Q
What are some disadvantages of a private limited company
A
-The legal set up costs are expensive.
-Harder to motivate and control workers
4
Q
What is limited liability
A
When shareholders are only liable for the amount invested in a company
5
Q
Who owns private limited companies
A
The ownership of a limited company is divided up into equal parts called shares. Whoever owns one or more of these is called a shareholder.
