O-LevelCommerceBusiness enterprise7100/11 · Oct/Nov 2011 · Q361 Mark
Raj and Kenni are partners in a small business selling dental products. Which advantage will they benefit from if they change the partnership into a private limited company?
AThey will be able to keep their trading accounts and financial affairs confidential.
BThey will be able to raise capital by selling shares to members of the public.
CThey will not have to provide collateral security if they wish to take out a bank loan.
DThey will not have to sell their personal possessions if they cannot pay their creditors.
✓ Correct answer
D: They will not have to sell their personal possessions if they cannot pay their creditors.
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