Question

6 marker - Options for start ups
Remember to include two benefits and explain them using 5 connected strands (sentences or phrases)
Discuss the benefits opening a business as a private limited company (Ltd) (6 marks)
One benefit is.............................
1.
2.
3.
Another benefit is..........................
4.
5.​

Answer 1

Ответ:

Объяснение:One benefit of opening a business as a private limited company (Ltd) is limited liability protection. This means that the personal assets of the company's owners are safeguarded in case the business faces financial difficulties, reducing their risk exposure. Limited liability protection ensures that the shareholders' losses are limited to the amount they have invested in the company's shares, thereby shielding their personal wealth from business-related debts and obligations. As a result, individuals are more inclined to invest in or start businesses, fostering entrepreneurship and innovation, which contributes to economic growth.

Another benefit is perpetual succession. This characteristic allows the business to continue its operations uninterrupted despite changes in ownership or the death of shareholders. In the event of a shareholder's departure or demise, the shares can be transferred to others, and the company can carry on its activities seamlessly. This feature ensures that the business retains its legal existence and can persist beyond the lifetime of its original founders, providing stability and assurance to employees, customers, and business partners. Perpetual succession thus promotes organizational longevity and continuity, enhancing the company's reputation and reliability in the marketplace.