Private limited company Flashcards
1
Q
who is a private limited company owned by
A
2-50 shareholders
-usually family
2
Q
who are the decisions taken by in a private limited company
A
directors who are usually shareholders or paid managers
3
Q
where do private limited companies get their finance from
A
- 3rd party investment
- retained profits
- financial institution
4
Q
what are a private limited company’s regulations like
A
complex- AGM and publish annual accounts
5
Q
how are the profits distributed within a private limited company
A
- shareholder dividend
- staff bonus
6
Q
what are the benefits of a private limited company
A
- market domination
- business growth
- no issue when changing owners
7
Q
what are the drawbacks of a private limited company
A
- high start up costs
- higher tax rates
- slow decision making
8
Q
what are a private limited companies objectives
A
- motivated staff
- efficient production
- business growth
- trained staff
