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 sellsshares 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