Private limited company

• What are the two preferred types of business ownership for start-up businesses?

  Sole trader and partnership
• Why do start-up businesses choose sole trader or partnership?

  They are simple and easy to establish
• What is another type of business ownership besides sole trader and partnership?

  Limited company
• How can limited companies raise finance?

  By selling shares
• What are people who buy shares in a limited company called?

  Shareholders
• What do shareholders receive from a limited company?

  A share of the company called a dividend
• Why are investors willing to buy shares in limited companies?

  They benefit from limited liability
• What are the key features of a limited company?

  • Can raise finance by selling shares
  • Shareholders own part of the business
  • Shareholders receive dividends
  • Investors benefit from limited liability
• What type of limited company can a start-up business consider?

  Private limited company (Ltd)
• What type of limited company can a start-up business consider?

  Private limited company (Ltd)
• What are the key features of a limited company?

  • Can raise finance by selling shares
  • Shareholders own part of the business
  • Shareholders receive dividends
  • Investors benefit from limited liability
• What are the two preferred types of business ownership for start-up businesses?

  Sole trader and partnership
• Why do start-up businesses choose sole trader or partnership?

  They are simple and easy to establish
• What is another type of business ownership besides sole trader and partnership?

  Limited company
• How can limited companies raise finance?

  By selling shares
• What are people who buy shares in a company called?

  Shareholders
• What do shareholders receive from the company?

  A share of the company, called a dividend
• Why are investors willing to buy shares in limited companies?

  They benefit from limited liability