Discuss five advantages of limited liability company over other form of business unit

      

Discuss five advantages of limited liability company over other form of business unit

  

Answers


daniel
1.Limited liability-The liability of the company is always limited by share capital or guarantee.This ensures that no shareholder is liable in case of liquidation beyond your share/guarantee capital.

2.Specialized management-companies are always managed by trained board of directors thus better performance compared to other form of business unit.

3.Ownership is transferable-unlike other forms of business,the ownership of company is transferable from one person to another through share transfer because shares are unit of ownership.

4.Easier to raise capital-Limited companies can raise capital easily through floating shares to the public or issuing bond.

5.Separate legal entity-Limited company is recognized by the law as a private person as thus it has the right to transact,to sue or be sued.It is separate person from the share holders.

skymucdan answered the question on October 11, 2017 at 09:12


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