Private Limited Liability Company Structure
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Questions and Answers

What is a key advantage for shareholders of a private limited liability company?

  • Limited liability for personal assets (correct)
  • High liquidity of shares
  • Public stock offerings
  • Unlimited liability for personal assets

    • What distinguishes the management structure of a private limited company from that of a public company?

  • Board of directors appointed by shareholders (correct)
  • Management by government-appointed officials
  • Direct election of the CEO by shareholders
  • Hierarchy of managers based on shareholding

    • How are shares typically transferred in a private limited company compared to a public company?

  • Restricted transfer with lower liquidity (correct)
  • Open market transactions
  • Public auction
  • Easily traded on stock exchanges

    • Where do private limited companies primarily source capital from?

    <p>Venture capitalists and bank loans (A)</p> Signup and view all the answers

    What is a distinguishing factor between private and public limited companies regarding reporting obligations?

    <p>Private companies disclose more information (B)</p> Signup and view all the answers

    What is a defining characteristic of a public limited company?

    <p>Available for purchase by the general public (A)</p> Signup and view all the answers

    What is the primary reason for the distribution of profits or surpluses in cooperatives?

    <p>To align the cooperative's operations with the interests and contributions of its members (B)</p> Signup and view all the answers

    Which of the following is a unique challenge faced by cooperatives?

    <p>All of the above (D)</p> Signup and view all the answers

    Which of the following best describes the regulatory environment for cooperatives?

    <p>Highly variable across different countries and regions (B)</p> Signup and view all the answers

    What is the primary focus of an association, as described in the text?

    <p>Serving the collective interests of its members (D)</p> Signup and view all the answers

    How are associations typically governed, according to the text?

    <p>By a board of directors or committee elected by the members (D)</p> Signup and view all the answers

    What is the primary source of funding for associations, as mentioned in the text?

    <p>Membership dues (A)</p> Signup and view all the answers

    What is the primary purpose of the advocacy work undertaken by associations, according to the text?

    <p>To promote the interests of their members (D)</p> Signup and view all the answers

    Which of the following is a potential benefit of membership in an association, as described in the text?

    <p>Access to exclusive resources and networking opportunities (A)</p> Signup and view all the answers

    What is the primary difference between associations and cooperatives, as described in the text?

    <p>Associations focus on serving the collective interests of their members, while cooperatives focus on maximizing profits (D)</p> Signup and view all the answers

    Which of the following is a common challenge faced by both cooperatives and associations, according to the text?

    <p>All of the above (D)</p> Signup and view all the answers

    What is a key advantage of a public limited company mentioned in the text?

    <p>Ability to raise significant capital by selling shares in the public market (C)</p> Signup and view all the answers

    What is one of the significant differences between a foundation and a public limited company?

    <p>A foundation is created as an independent legal entity (B)</p> Signup and view all the answers

    What allows foundations to operate tax-exempt in many regions, like the United States?

    <p>Using income for charitable activities each year (D)</p> Signup and view all the answers

    What is a defining feature of cooperatives, as mentioned in the text?

    <p>Serving specific community needs (C)</p> Signup and view all the answers

    How do cooperatives differ from traditional corporations in terms of decision-making?

    <p>One member, one vote principle (D)</p> Signup and view all the answers

    Why do cooperatives focus on benefiting their members specifically?

    <p>To serve shared economic, social, or cultural interests (D)</p> Signup and view all the answers

    What is one consequence of a public limited company's shares being easily transferable?

    <p>High level of shareholder activism (D)</p> Signup and view all the answers

    Why are foundations designed to operate in eternity?

    <p>To continue philanthropic activities after founders' death (B)</p> Signup and view all the answers

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