Learn Unit 2 1.2 Choosing the right legal structure for the business

Created by: Amelia Cantwell-Hyde
Created on: 10-10-15 16:39

1. State 3 features of a private limited company...

1. Has limited liability 2. Sells share to family and friends 3. Does not have to make its financial records available to the public

1 of 6

2. State 3 features of a public limited company...

1. Has limited liability 2. Sells shares on the stock market 3. Has to make it's financial records available to the public

2 of 6

3. State 2 benefits of staying as a small business and not growing...

1. Cab react quickly to changes in the market 2. Easier to manage

3 of 6

4. What does limited liability mean?

This is where the owners/shareholders do not lose their possessions if the business gets into financial difficulty. They just lose the money that they put into the business.

4 of 6

5. State 1 benefit of moving from a private limited company to a public limited company...

You can sell shares on the stock market which can raise a lot of capital. This capital can be used to grow the business, for example the capital could be used to open more stores.

5 of 6

6. What are the benefits of staying as a private limited company and not moving to a public limited company?

You can keep your financial records private, there is no risk of a competitor buying up your shares and taking over your business.

6 of 6

Other cards in this set

Card 2

Front

2. State 3 features of a public limited company...

Back

1. Has limited liability 2. Sells shares on the stock market 3. Has to make it's financial records available to the public

Card 3

Front

3. State 2 benefits of staying as a small business and not growing...

Back

Card 4

Front

4. What does limited liability mean?

Back

Card 5

Front

5. State 1 benefit of moving from a private limited company to a public limited company...

Back

View more cards

Get Revising

Learn Unit 2 1.2 Choosing the right legal structure for the business