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GCSE Business · key term
A business owned by shareholders, with limited liability, whose shares cannot be offered for sale to the general public.
Used by AQA, Edexcel and OCR
Paper 1, Paper 2
Revise: Business Legal StructuresA private limited company, usually identified by ‘Ltd’, has one or more shareholders. It cannot offer its shares for sale to the general public. Shareholders are often family members or friends, although a private company can have just one owner.
Specification 1.4.1 · Paper 1
An incorporated business owned by shareholders with limited liability, whose shares are not offered for sale to the general public.
Revise: Start-Up Ownership OptionsThe main start-up ownership options are a sole trader, a partnership and a private limited company. A separate choice is whether to develop an independent business or operate a franchise using an established business’s brand and system.
Paper 1
A company owned by shareholders whose shares cannot be offered for sale to the general public.
Revise: Types of Business OwnershipThe four forms considered here are sole traders, partnerships, private limited companies and public limited companies.
The key difference between Ltd and plc is whether shares can be offered to the public, not simply business size. A private limited company can be large.
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