unit 1 Types of ownership private limited companies

Question 1

what is a private limited company

Answer 1

private so shares can only be shared to people that they know
e.g. family or friends
all shareholders must agree to give out share
Ltd after its name

Question 2

limited liability

Answer 2

a private limited company has limited liability meaning that is the business is in debt the means you cannot lose money if you invest in it.
the money may come back to you.

Question 3

being incorporated

Answer 3

being incorporated means that the company can still run even if a person dies

Question 4

being separated from the business name when you are the owner

Answer 4

being separated from the business name when you are the owner means a private limited company has limited liability meaning that is the business is in debt the owner cannot have its belonging taken to pay of debt

Question 5

what do most shareholders expect to recieve

Answer 5

dividend.

If the business is failing it may make the shareholders unhappy as they expect to be paid their dividend

Question 6

what are they suppose to publish per year

Answer 6

Unlike sole and partnership ownership they legally obliged to publish their accounts per year so anyone can find out how much they are earning

Question 7

why is it more expensive to open a private ownership business than a sole or partnership one

Answer 7

since it involves more paper work

Question 8

how many people are allowed to be share holders

Answer 8

no more than 50