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WorksheetsLimited Companies
Total questions: 22
Worksheet time: 11mins
What type of legal identity would a stakeholder for a Limited Company have?
A seperate legal identity
The business is apart of your legal identity
A Partnership
Joined legal identity
What document outlines the details of the company?
The Articles of Association
The Memorandum of Association
The Legal Documents of Association
The Benefits of Association
What legal document outlines the internal running of the company?
The Articles of Association
The Memorandum of Association
The Documents of Association
The Structure of Association
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
How are shares transferred in a LTD?
Transferred through the Stock Markets
Transferred privately
A portion of a company’s earnings distributed to its shareholders.
Income
Profit
Dividend
Earning
In order to transfer shares in a LTD, all shareholders must agree on the transfer, true or false?
True
False
The Business raises capital by selling shares. This gives them the right to:
vote on important matters
receive dividends
sell their shares for a profit
receive subsidies
What is a limited company?
A Business that has no separation between the shareholders legal identity, and the businesses.
A Business that makes 1 person liable for the businesses debt.
A Business that stops shareholders being personally liable to a business debt.
A Business that's shareholders have a seperate legal identity to the business.
Very often, Limited companies are owned by:
Family
Lots of people
2 or more people
Only 1 person
A person or organisation who owns shares in a limited company is called...
limited liability
dividend
shareholder
limited company
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
What is a 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
Private Limited Companies have
Limited Liability
Unlimited Liability
Which of the following is the least complicated to set up?
Sole Trader
Partnership
Private Limited Company
Private Limited Companies have to make Financial Information Public
True
False
