Private Limited Company Flashcards
1
Q
Private Limited Company
A
Incorporated business owned by shareholders, shares usually bought by family / friends
2
Q
Ownership
A
Business is its own person- something goes wrong the business will get told not the person specifically
3
Q
Liability
A
Limited
4
Q
Taxes paid
A
Corporation tax
5
Q
Advantages of owning a business as a private limited company
A
Less risk - can’t lose own possessions
Raise more capital - more shareholders invest
More knowledge
6
Q
Disadvantages of owning a business as a private limited company
A
Everyone has to agree on shares before selling
May have to pay dividends
Set up of accountancy is complex and business is difficult to set up
