Private limited companies have limited liability. This can be of benefit to the business's reputatiion, but banks may be reluctant to lend to small companies, without guarentees. Private companies have to be llegally established and registered at companies house.
They must produce certain accounts, which are available to the public. If the business cannot pay its debts, it may fail. For a company this is called insolvency.
Comments
No comments have yet been made