Formation and Organization: Fill In the Blanks

True Tamplin

Written by True Tamplin, BSc, CEPF®
Updated on March 25, 2022

1. are not required to issue a prospectus.

2. The minimum number of members in a private limited company is and the maximum is .

3. A public limited company must have at least directors.

4. The documents issued to the public with a view to invite applications for the sale of shares are known as the .

5. The are the owners of the company.

6. The memorandum of association must contain the following five clauses: a. , b. , c. , d. , e. .

7. Private limited companies must have the phrase of as a part of their name.

8. The amount called but not paid by shareholders is referred to as .

9. Corporations are governed by .

10. The shares of a public limited company are .

Frequently Asked Questions

What is meant by a private limited company?

A private limited company (LTD) is a type of privately held small business entity that limits owner liability to the value of their shares, limits the number of shareholders to 50, and restricts shareholders from publicly trading shares.

How does a corporation work?

A public limited company (PLC) is a type of corporation in which shareholders have limited liability and the company has a separate legal existence from its members.

How does a corporation work?

How does a corporation work?

What are the advantages of a private limited company?

A private limited company has some kind of limited liability. The shareholders are only responsible for their shares, and they cannot be held liable for more than that.

What is a business prospectus?

A prospectus is a formal legal document designed to provide information and full details about an investment offering.

True Tamplin, BSc, CEPF®

About the Author
True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.

2 thoughts on "Formation and Organization: Fill In the Blanks"

    1. Thanks! Let us know what other kinds of information you’d like to see and we’ll try to add it in the future. Best of luck!

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