Question 22.

Only one of the following statements about the limited company form of business is correct:

a.

The directors of a limited company are obliged by law to hold shares in the company

b.

Shareholders of a limited company share the profits equally between themselves

c.

A limited company cannot itself borrow money; borrowing must be done on its behalf by its shareholders or directors

d.

Members of the general public can find out about the financial affairs of the company

Question 23.

One of the following statements about the limited company form of business is incorrect

a.

Shareholders are personally liable for all the liabilities incurred by the business

b.

Regular filing of information about the affairs of the company is a legal requirement

c.

The limited company form of business allows ownership of the business to be spread amongst many people

d.

Shareholders can appoint professional managers as directors of the company