Science Fair Project Encyclopedia
Limited company
A limited company (Ltd.) is a company whose practices are limited by English law. There are three main types of limited companies: private limited company by shares , private limited company by guarantee (see also private limited company) and public limited company.
Private limited companies by shares (which correspond to the U.S. Incorporation and the German AG) offer several advantages over trading as sole trader (e.g. limited liability).
As a shareholder in a limited company, you can only lose what you have put into the company if it were to go bankrupt (e.g if you bought shares for £50, you can only lose £50). Being a shareholder means you have limited liability.
10-26-2009 08:16:03
The contents of this article is licensed from www.wikipedia.org under the GNU Free Documentation License. Click here to see the transparent copy and copyright details
The contents of this article is licensed from www.wikipedia.org under the GNU Free Documentation License. Click here to see the transparent copy and copyright details