ENTREPRENEURIAL PLANNING
FINANCIAL PLANNING AND ANALYSIS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is a feature of a private limited company?
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Limited liability, shares sold privately to family and friends
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Financial records are publicly available, greater regulatory requirements
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Shares can be sold on the stock market
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None of the above
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Explanation:
Detailed explanation-1: -It is limited by shares, meaning it is incorporated with a share capital made up of shares taken by each initial member on incorporation. Members are liable only to the extent of any unpaid amounts on their shares. That is, their personal assets are not at risk in the event of the company being wound up.
Detailed explanation-2: -A separate legal entity that is responsible for its own income, assets, debts, and liabilities. There are no shareholders because this type of company does not issue shares. A guarantor’s personal liability is limited to a fixed amount of money called a ‘guarantee’. More items •07-Apr-2023
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