Chapter 4 (Edexcel International Business Studies)

Descripción

Quick Quiz -Limited Liability Companies-
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Resumen del Recurso

Pregunta 1

Pregunta
What is the term used for "Private Limited Companies"
Respuesta
  • PLC
  • LTD

Pregunta 2

Pregunta
What are the 2 advantages of Limited Liability Companies
Respuesta
  • More capital can be raised
  • May be able to dominate the market
  • Business will continue if a shareholder dies
  • Shares can be bought and sold easily

Pregunta 3

Pregunta
What is meant by the term "Limited Liability"
Respuesta
  • Owners have to pay the debts with their own money
  • Owners does not have to pay debts with their own money

Pregunta 4

Pregunta
What makes a 'Going Public' process expensive
Respuesta
  • There are advertising and administrative expenses
  • Companies has to be big enough to be a public company and it requires money

Pregunta 5

Pregunta
What are the 2 disadvantages of Public Limited Companies
Respuesta
  • Setting up costs can be very expensive
  • More regulatory control due to Company Acts.
  • Profits have to be shared between more members
  • Takes time to transfer shares to new owner

Pregunta 6

Pregunta
What is a 'Joint Venture'
Respuesta
  • Two or more companies share the costs and responsibilty
  • Two or more companies merge both of the company's share

Pregunta 7

Pregunta
What are the disadvantages of 'Joint Venture'
Respuesta
  • Disagreement may occur about the management
  • They have to split the profit between investor
  • Takeovers are very expensive

Pregunta 8

Pregunta
What are the advantages of Joint Venture
Respuesta
  • Competitions may be eliminated
  • Each business can specialize in their own aspects
  • Joint Venture have low chance of succeeding

Pregunta 9

Pregunta
Which one is a Public limited company
Respuesta
  • Facebook
  • AMC (TV company)

Pregunta 10

Pregunta
What does 'Flotation' means
Respuesta
  • The process of 'Going Public'
  • The value of the share increases
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