LTDs Flashcards
1
Q
What is a private limited company? (LTDS)
3 pros and cons
A
a business that is own by shareholders
- tend to be family and friends
pros
Limited liability
Raise more funds through selling shares
Separate legal identity = they continue to exist even if shareholder change
cons
Financial records are publicly available
Suppliers may view limited liability as a risk
Can not sell shares on the stock limiting financial opportunities
