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What is a key characteristic of a private limited company in terms of source of capital?
What is a key characteristic of a private limited company in terms of source of capital?
- It can raise capital from a wide range of sources including the public
- It can raise capital only from banks and other financial institutions
- It is limited to raising capital from existing shareholders (correct)
- It can raise capital through issuing bonds and debentures
What is a major advantage of a limited company?
What is a major advantage of a limited company?
- It is a type of sole proprietorship
- It is a type of partnership
- It has a limited liability for shareholders (correct)
- It has a higher set-up cost
What is a key difference between a private limited company and a public limited company in terms of ownership?
What is a key difference between a private limited company and a public limited company in terms of ownership?
- Ownership is transferable in both private and public limited companies
- Ownership is transferable in public limited companies but requires approval from the stock exchange (correct)
- Ownership is not transferable in private limited companies
- Ownership is transferable in public limited companies but requires approval from the board of directors
Why are banks more willing to lend to limited companies?
Why are banks more willing to lend to limited companies?
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What is a disadvantage of a limited company?
What is a disadvantage of a limited company?
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What is a key characteristic of a limited company in terms of its existence?
What is a key characteristic of a limited company in terms of its existence?
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