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

2746 Views

See similar Business Studies A Level tutors

Related Business Studies A Level answers

All answers ▸

What is a benefit of market segmentation?


In what way does the seasonality affect operations of a busness?


Outline the change we have seen in organisational culture using examples. Discuss whether the idea of culture can be managed.


What is Ansoff's Matrix? Name and explain the 4 aspects.


We're here to help

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

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning