Private limited company Flashcards Preview

types of organisations > Private limited company > Flashcards

Flashcards in Private limited company Deck (8)
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1
Q

who is a private limited company owned by

A

2-50 shareholders

-usually family

2
Q

who are the decisions taken by in a private limited company

A

directors who are usually shareholders or paid managers

3
Q

where do private limited companies get their finance from

A
  • 3rd party investment
  • retained profits
  • financial institution
4
Q

what are a private limited company’s regulations like

A

complex- AGM and publish annual accounts

5
Q

how are the profits distributed within a private limited company

A
  • shareholder dividend

- staff bonus

6
Q

what are the benefits of a private limited company

A
  • market domination
  • business growth
  • no issue when changing owners
7
Q

what are the drawbacks of a private limited company

A
  • high start up costs
  • higher tax rates
  • slow decision making
8
Q

what are a private limited companies objectives

A
  • motivated staff
  • efficient production
  • business growth
  • trained staff