Many businesses are set up as limited companies. These are owned by shareholders and run by the board of directors. Which of the following are disadvantages of limited company status? a) The impression of a soundly based business organisation (though incorporation does not guarantee reliability or respectability) b) Easier to raise capital c) Must comply with legal and regulatory requirements d) Shareholders’ liability for any losses is limited to the amount of their investment
Many businesses are set up as limited companies. These are owned by shareholders and run by the board of directors. Which of the following are disadvantages of limited company status? a) The impression of a soundly based business organisation (though incorporation does not guarantee reliability or respectability) b) Easier to raise capital c) Must comply with legal and regulatory requirements d) Shareholders’ liability for any losses is limited to the amount of their investment
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter18: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 41P
Related questions
Question
1. Many businesses are set up as limited companies. These are owned by shareholders and run by the board of directors. Which of the following are disadvantages of limited company status?
-
a) The impression of a soundly based business organisation (though incorporation does not guarantee reliability or respectability)
-
b) Easier to raise capital
-
c) Must comply with legal and regulatory requirements
-
d) Shareholders’ liability for any losses is limited to the amount of their investment
in the company
1.1 A loan repayment to a bank would be recorded in the nominal ledger as:
-
a) Dr Bank Cr Capital
-
b) Dr Loan Cr Bank
-
c) Dr Loan Cr Bank
-
d) Dr Bank Cr Reserves
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT