LTD

• Many LTD arise from sole traders and partnerships which grow and develop into a ltd
• Owners and other shareholders have to agree before anyone buys or sells shares and is often done privately within The business
• Has limited liability meaning that owners have more financial protection if the company goes bust this means that more financial risks are taken compared to sole traders and partnerships
• Requires a lot of paperwork unlike sole trlasers and partnerships as LTD are obliged to publish their accounts each year
• Harder for a LTD business to borrow money from banks as the owners aren’t risking their personal assets this means that banks are less able to get their money back if a company fails
• More owners leading to less profit available for each owner and having more owners could lead to decision making becoming slower or harder