Types of limited companies

Which of the following is a disadvantage of being a public limited company?

• The business is at risk of takeover

• Unlimited liability

• Large sums of money can be raised

• Limited liability

What are the owners of private and public limited companies called?

• Stakeholders

• Board of directors

• Managers

• Shareholders

Private and Public Limited companies both have

• Unlimited liability

• Limited liability

Which of the following is an advantage of a private limited comapany

• You can sell shares openly to anybody around the world

• You can choose your own shareholders that are suitable for the business

• You can gain more sales as the business is well known

• They have unlimited liability

Why does a company issue shares?

• To raise money that can be invested in the business

• To get more owners

• To make more profit

• To allow the business to be sold off

What is one advantage of a public limited company?

• Unlimited liability

• They can buy an unlimited amount of vehicles.

• They can tell private limited companies what to do.

• Shares are easily transferable.

    The ......................... company shall have ‘Sdn Bhd’ at the end of its name.

• Private

• Public

    The ......................... company shall have ‘Bhd’ at the end of its name.

• Private

• Public