Write down the five advantages of Limited Company-00043
This subjective question is related to the book/course
vu acc501 Business Finance.
It can also be found in
vu acc501 Mid Term Solved Past Paper No. 3.
Question 1: Write down the five advantages of Limited Company.
Answer:
It is a legal entity created by law and hence has its own recognition, good will and brand equity etc. It is a wide form of business and hence a formal approach for various partners/investors to come and work for the same objectives in an organized form. Liability limited to company assets only. Investors/partners do not personally liable for any loss or in state of bankrupty. Being a legal entity, easy to get loans or gather funds from public (for public limited companies only) or financial institutes. Being a legal entity, it can enjoy more opportunities for mega projects and trade/operations opportunities in international markets on its on behalf.
