WorksheetsPrivate vs Public Limited Companies
Total questions: 8
Worksheet time: 5mins
A person or organisation who owns shares in a limited company is called...
limited liability
dividend
shareholder
limited company
If an unincorporated business fails, then the owners might have to use their personal wealth to finance any business debts.
unlimited liability
limited liability
unincorporated business
incorporate business
What would shareholders get in return for investing their money in a business?
capital
debt
dividend
obligation
What is the disadvantage of being a Plc?
If the business fails and has debts, the shareholders need to pay all of the debts as well
Difficult to generate more capital from selling the shares
The legal formalities of setting up a Plc are very costly
The shares cannot be sold or transferred to anyone else without the agreement of the other shareholders
Which of the following is NOT the advantage of an Ltd?
Although the process to establish one is more complicated than a sole trader, it is relatively easier compared to a Plc
The risk of being taken over by another company is generally lower as the shares are not offered to the public.
There is no restriction on the buying, selling or transfer of shares
Original shareholders can keep control of their business as long as they do not sell too many shares to other people
Alphabet Inc. is an American multinational technology conglomerate holding company headquartered in Mountain View, California. They did an IPO in 2004. That means Alphabet Inc is an...
(the answer is more than 1)
incorporated business
unincorporated business
public limited company
private limited company
A legal requirement for all companies in which shareholders may attend and vote on who they want to be on the Board of Directors for the coming year.
Dividends
Annual General Meeting
Shareholders
Initial Public Offering
What is the biggest difference between private and public limited companies?
Ltd is unlimited liability, but the Plc is a limited liability
You cannot sell your shares to the public if you are an Ltd, but you can if you are a Plc
Plc is an unincorporated business, but Ltd is an incorporated business
The share price of a Plc company is way much more valuable than an Ltd company
