Private Limited Company (LTD) Flashcards
1
Q
Who owns the business?
A
Owned by shareholders
2
Q
Number of owners
A
2-50
3
Q
Who controls the business?
A
The board of directors
4
Q
Who finances the business?
A
The shareholders
5
Q
What liability is there?
A
Limited Liability
6
Q
Who keeps the profit?
A
The shareholders can keep it or they can put it back into the business
7
Q
How is the business established
A
Shareholders need to agree on written rules and incorporation.
8
Q
What happens if the owner dies?
A
Company will still exist and whoever owns the shares now continues the business
9
Q
Give 2 advantages of a Private Limited Company
A
Limited Liability
Continues even if the owner dies
10
Q
Give 2 disadvantages of a Private Limited Company
A
Accounts have to be independently checked
Have to go through the process of trying to register
