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
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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
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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
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Limited companies can raise capital through:
Borrowing from banks
Attracting investment
All of the above
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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
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State one advantage of limited liability for shareholders in a limited company.
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What is one potential disadvantage of limited companies?
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