What is one advantage of a limited company

A limited company can be either public or private and its main advantage is that it's incorporated status gives the owner a form of protection meaning that their legal identity and the companies legal identity are separate on paper. This means that their liability is limited and if the company goes under, they do not lose any of their own assets, only the share capital in the company or the share holders funds. If they didnt have this and were a sole trader they would be at risk of losing all of their personal assets aswell as the companies assets if it went bankrupt.

ML
Answered by Megan L. Business Studies tutor

2446 Views

See similar Business Studies A Level tutors

Related Business Studies A Level answers

All answers ▸

Case Study: PLG Ltd’s financial position is relatively weak. To what extent should this be the most important influence on its promotional mix given its objective of growth


Asses the likely impact on a domestic firm of a global merger with a bigger MNC (Multi-national corporation) 10marks


Explain the difference between redundancy and dismissal. A-level business, paper 1 2014.


What is cash flow?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences