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O-LevelAccountingThe fundamentals of accounting7707/12 · May/June 2025 · Q231 Mark

What are the advantages to shareholders of operating as a limited company? 1 It has a separate legal identity. 2 It makes it easier to prepare financial statements. 3 It makes it quicker to prepare financial statements. 4 It protects personal assets.

A1, 2, 3 and 4
B1 and 2 only
C1 and 4 only
D2, 3 and 4 only

✓ Correct answer

C: 1 and 4 only

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About this question

Topic
The fundamentals of accounting, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source
O-Level Accounting, May/June 2025 Paper 1 Variant 2, question 23.

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