2.7 - Limited v Unlimited

Question 1

Which is rare?

Answer 1

Private unlimited companies

Question 2

Liability in an unlimited company?

Answer 2

Each member of the company is fully liable for the company’s debts - members in similar position to partnership

Question 3

What is an advantage of unlimited companies?

Answer 3

Perpetual succession

Question 4

What are unlimited companies usually used for?

Answer 4

Things like holding of land investments NOT trading companies

Question 5

If you have a company that is limited by shares, it can also be…

Answer 5

Limited by guarantee

Question 6

Where a company is limited by shares, the liability of its shareholders is limited to?

Answer 6

Any amount unpaid on their shares

Question 7

In a company limited by guarantee, how many shareholders are there?

Answer 7

0

Question 8

What do the members give a guarantee of?

Answer 8

Guarantee to contribute towards the assets of a company in the event of its being wound up or insolvent. However the guarantee is usually nominal, frequently £1