6 Questions
What is a key characteristic of a private limited company in terms of source of capital?
It is limited to raising capital from existing shareholders
What is a major advantage of a limited company?
It has a limited liability for shareholders
What is a key difference between a private limited company and a public limited company in terms of ownership?
Ownership is transferable in public limited companies but requires approval from the stock exchange
Why are banks more willing to lend to limited companies?
Because of their better creditability
What is a disadvantage of a limited company?
It has a higher set-up cost
What is a key characteristic of a limited company in terms of its existence?
It is not affected by the death or bankruptcy of shareholders
This quiz covers the key differences between private and public limited companies, including ownership, source of capital, and transfer of ownership. Learn about the characteristics and advantages of each type of company. Test your knowledge and understanding of limited companies!
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