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What Is a Private Limited Company? - Definition, Advantages & Disadvantages

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

How is a private limited company different from a sole proprietorship?

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1. What is owner liability limited to?

2. What action would negate a shareholder's limited liability protection?

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About This Quiz & Worksheet

Use the worksheet and quiz to discover what you know about the pros and cons of a private limited company. Answer questions on topics such as the maximum number of shareholders a private limited company is allotted and owner liability.

Quiz & Worksheet Goals

Learn how well you know how to:

  • Determine an action that would negate a shareholder's limited liability protection
  • Name the financial document that must be filed 9 months after the end of the financial year
  • Analyze a disadvantage of a private limited company

Skills Practiced

Use the following study skills:

  • Reading comprehension - ensure that you draw the most important information from the related lesson on a private limited company
  • Making connections - use understanding of the concept of the financial year and how it is connected to filing important documentation
  • Interpreting information - verify that you can read information regarding shareholders and interpret it correctly
  • Information recall - access the knowledge you've gained regarding owner liability

Additional Learning

Learn more about a private limited company with this lesson named What Is a Private Limited Company? - Definition, Advantages & Disadvantages. The lesson will adhere to the following study points:

  • Determine advantages of a private limited company
  • Explain a restricted trade of shares
  • Define sole proprietorship
  • Recognize tax advantages
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