Advantages and disadvantages of limited companies. - SS1 Commerce Past Questions and Answers - page 1
1
What is one advantage of limited companies?
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A
Unlimited liability
B
Perpetual existence
C
Unlimited liability
2
Limited liability means that shareholders of a limited company:
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A
Have their personal assets separate from the company's liabilities
B
Have their personal assets separate from the company's liabilities
C
Have unlimited liability for the company's debts
3
Which statement is true about limited companies?
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A
They have minimal legal and administrative requirements
B
They are not required to maintain financial records
C
They often have a higher level of credibility and professionalism
4
Limited companies can raise capital through:
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A
Borrowing from banks
B
Attracting investment
C
 All of the above
5
Which of the following is a potential disadvantage of limited companies?
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A
Reduced privacy for shareholders and directors
B
Lower setup and maintenance costs
C
Simplified decision-making process
6
State one advantage of limited liability for shareholders in a limited company.
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7
What is one potential disadvantage of limited companies?
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