Limited liability companies have to disclose some information about their operations.

They also have to put ‘limited’ (abbreviation ‘ltd’) or public limited company

(abbreviation ‘plc’) after their name to warn the public that their liability is limited.

Do you think that such safeguards are adequate? What more can be done? How far do you think that it is fair for individuals to set up businesses under the protection of limited liability, as the business may then go into liquidation and the creditors are left without any means of getting their money back from the owners of the company? Is this acceptable if the concept of limited liability encourages new businesses to be formed?

Write down your responses in your notebook.