Business Structures 1

Shareholders will also be looking for the share price of the company to rise and for _______ to be paid.

• dividends

• taxes

• debts

• wages

Shareholders’ liability is limited to the amount of their _______.

• financial investment

• annual profit

• personal assets

• company revenue

Both private limited companies (LTD) and public limited companies (PLC) have more than one owner.

• True

• False

The share certificate shown in the image represents:

• Ownership of shares in a company

• A loan given to a company

• A government bond

• A fixed deposit receipt

Which of the following statements is true about shareholders in a Private Limited Company (LTD)?

• Shareholders are chosen.

• Shareholders are randomly selected.

• Anyone can become a shareholder.

• Only government officials can be shareholders.

Are shares of a Private Limited Company (LTD) publicly available to purchase on the stock exchange?

• True

• False

Fill in the blank: In a Private Limited Company (LTD), financial accounts must be _____

• published

• hidden

• destroyed

• outsourced

What can share capital provide for a Private Limited Company (LTD)?

• Additional source of funds to help growth

• Decrease in company value

• Loss of control

• None of the above

The more shares that are issued in a Private Limited Company (LTD), the less amount of control the original owner(s) has.

• True

• False

Which of the following is a benefit of a Private Limited Company (LTD)?

• Financial accounts are published

• Share capital = extra finance

• Shared profits and dividend payments

• Extra legal costs of incorporation