Public and Private Limited Companies

There are two types of limited company - what are they?

• Sole trader and partnership

• Private limited company and Public limited company

A Private Limited Company is better known by which acronym - PLC or LTD?

• PLC

• LTD

A Public Limited Company is better known by which acronym - PLC or LTD?

• PLC

• LTD

A private limited company and a public limited company are owned by?

• One Owner

• 2-20 owners

• Shareholders

A sharedholder is a person who owns a % of a limited company - True or False?

• True

• False

Owners have an interest in a business doing well so that they?

• Self-satisfaction - that they part own a succesful company

• Receive high dividends (payments) from a company that is making a profit.

How many owners does a Private Limited Company typically have?

• 2-50

• 2+

How many owners does a Public Limited Company typically have?

• 2-50

• 2+

Identify two advantages of Public and Private limited companies (choose two)

• Limited liability - losing only the investment into the business

• Unlimited liability - losing the investment and personal posessions to pay debtors

• Costly and complicated to set up, as need to register with Companies House.

• Greater capital investment available.

Identify a disadvantage of Public and Private limited companies

• Limited liability - losing only the investment into the business

• Unlimited liability - losing the investment and personal posessions to pay debtors

• Costly and complicated to set up, as need to register with Companies House.

• Greater capital investment available.