Proprietary Company Flashcards
(10 cards)
1
Q
Number of owners
A
1-50
2
Q
Liability of owners
A
Limited
3
Q
Distribution of profits
A
Dividends to shareholders
4
Q
Transfer of ownership
A
Yes
5
Q
Separate legal entity
A
Yes
6
Q
Continuity of existance
A
Yes
7
Q
Ability to raise capital from the public
A
No
8
Q
Regulations
A
- Corporations Act
- GST Laws
- Business Names Act
9
Q
Advantages
A
- Separate legal entity
- Limited liability for shareholders
- Can raise more capital
- Can transfer ownership
- Professional management employed
- Continuous existence
10
Q
Disadvantages
A
- Highly regulated
- Separation of ownership and control
- Cost of set up and maintenance
