Private Limited Company (Ltd.) Flashcards
1
Q
What is a private limited company?
A
Private limited companies cannot sell their shares on The Stock Market
They are often owned by people who know each other, such as family or friends.
They are usually smaller than public limited companies.
2
Q
What are the advantages of a Ltd.
A
More capital can be raised by selling shares
The owners have limited liability
unlike a sole trader or a partnership
3
Q
What are the disadvantages of a Ltd.
A
The profits have to be shared between the shareholders
It is slower and more expensive to set up than a sole trader or partnership
The original owners can lose control if they own less than 50% of the shares
Anyone can find out the financial position of the company from Companies House
