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

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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
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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
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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
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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.
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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.
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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.
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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

Preview of the front of card 3

Card 4

Front

4. What does limited liability mean?

Back

Preview of the front of card 4

Card 5

Front

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

Back

Preview of the front of card 5
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