Private Limited Company
- Created by: Emma Peppercorn
- Created on: 18-04-13 16:00
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- Private Limited Companies (LTD)
- Companies jointly owned by people who have invested in the business. The people are known as shareholders
- LTD'S tend to be owned by either family or friends and are quite often not much larger in size than a sole trader or partnership.
- Advantage
- Limited Liability
- This means that the owners (shareholders) of a company are only liable for the debts up to the value they put into the business. E.G. if they put in £10,000 they are only liable to pay £10,000 of the debts.
- Limited Liability
- Disadvantages
- Risk losing control
- May have to change the companies objectives because shareholders focus on their investment
- Risk losing control
- Companies jointly owned by people who have invested in the business. The people are known as shareholders
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