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