Understanding Limited Companies in Britain

What is the minimum number of shareholders required to form a private limited company in Great Britain?

• 1

• 2

• 3

• 5

Which of the following is a characteristic of a public limited company?

• Shares are not traded on the stock exchange

• Limited liability for shareholders

• Unlimited liability for shareholders

• No requirement to publish financial statements

What is the abbreviation for a private limited company in Great Britain?

• PLC

• LTD

• LLC

• INC

Which document is required to incorporate a company in Great Britain?

• Articles of Association

• Certificate of Incorporation

• Memorandum of Understanding

• Partnership Agreement

What is the maximum number of shareholders a private limited company can have in Great Britain?

• 50

• 100

• 200

• No limit

Which of the following is a requirement for a public limited company but not for a private limited company?

• Must have at least one director

• Must hold an annual general meeting

• Must have a company secretary

• Must have a registered office

What is the minimum share capital required for a public limited company in Great Britain?

• £1,000

• £5,000

• £50,000

• £100,000

Which of the following is true about the shares of a private limited company?

• They can be freely sold on the stock exchange

• They are not publicly traded

• They must be sold to the public

• They have no voting rights

What is the primary advantage of a private limited company over a sole proprietorship?

• Unlimited liability

• Easier to raise capital

• More regulatory requirements

• Simpler tax filing

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

• Limited access to capital

• More regulatory scrutiny

• Unlimited liability

• Difficulty in transferring shares