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Task 10 293

7 Which one of the following statements is not true of a private limited company?

(a) The company will continue in existence indefinitely unless it is liquidated.

(b) The company can sue on contracts made in its name.

(c) The company can employ the person who owns all the shares in the company.

(d) A major shareholder in the company cannot hold shares in a rival company.

8 Explain the characteristics of a limited company.

Task 10

A friend of yours from France is considering setting up a business in England. Your friend has
asked you to draw up a report briefly explaining the following matters:

(a) The characteristics of a company.

(b) The distinction between a public company and a private company.

(c) The names which a company may use and the places in which the company name must be
displayed.

(d) How a company is formed.

Visit http://www.mylawchamber.co.uk /macintyreessentialsfor:

Access to the accompanying Pearson eText– an eBook

version linked to all of the resources below which you can

personalise with your own notes.

Multiple choice questions, flashcards and practice exam questions, to test

yourself on this chapter.

Use Case Navigatorto read in full some of the key cases referenced in

each chapter.

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