Ownership
The maximum amount of shareholders that a private limited company can have.
What is 50?
True or False? Private Limited Companies offer limited liability.
True
Advantage or Disadvantage? Lower possibility of loss of control to outsiders.
Advantage
Two sources of capital for Private Limited Companies are?
What are Equity Financing, Angel Investors, Crowdfunding, Government Grants/Loans, Debt financing. Venture Capital
True or False? Shares of a private limited company can be sold publicly on the stock exchange.
False
What is limited Liability?
Shareholders are only legally responsible for the debts of a company to the extent of the nominal value of their shares.
True or false? A private limited company is separate and distinct from its owners.
True
Give two personal risk a private limited company owner may face.
Financial Risk, Reputation Risk. Legal Liability, Risk of insolvency
Give two examples of private limited companies.
Digicel Group Ltd, Columbus Communication Ltd, Advantage General Insurance Co Ltd
Name three steps of the formation process.
NAME RESERVATION, MEMORANDUM AND ASSOCIATION, ARTICLES OF ASSOCIATION, SHARE CAPITAL, REGISTERED OFFICE, DIRECTOR AND SHAREHOLDERS, REGISTRATION, CERTIFICATION OF INCORPORATION
List three disadvantages of a private limited company.
Raising of capital may be hampered since shares cannot be traded publicly.
Transfer of shares is limited by the approval of existing members.
Profits have to be shared among a larger group of people.
Legal requirements may be time consuming and costly to implement.
Give three business risks they may face.
Financial Risk, Market Risk, Regulatory Risk, Partnership risk, Intellectual property risk