20 Analyse why an entrepreneur might choose to set up a private limited company.

[Mamoona Hussain]

KN: If the entrepreneur decides to start a private limited company, then he and the rest of the owners will have the advantage of limited liability, which means that their personal assets will be safe.
APP: For instance the owners of the limited company Dyson (UK) do not have their personal assets at stake.
AN: Due to this, more people will be interested to invest in the business, increasing capital, which can be used to improve to the quality of their products, or to open up a new branch, due to which they will be able to attract more customers, increasing sales, enabling them to earn more revenue and higher profit margins, thus, ensuring long term survival of the business.

[Naveen fatima]

[KN]An entrepreneur might choose to set up a private limited company because it has limited liability.
[APP] For example, if the company has debts, the owners only lose what they invested and do not risk their personal belongings like a house or car.
[AN]This makes it safer for the entrepreneur to take risks, encourages investment and gives them confidence to grow the business without fear of losing everything.

[Hajra]

K: An entrepreneur might start a private limited company because it protects their personal belongings.
App: For example, if someone opens a clothing business, their car or house won’t be taken if the business fails.
An: This makes the risk smaller, helps them collect money by selling shares to family or friends, and lets the business expand more safely over time.

[Abdullah Mohsin]

[KN] Limited liability.
[APP] Private limited companies have limited liability. This means the owner's personal assets will not be sold off to contribute to loss.
[AN] Hence this encourages an entrepreneur to setup a private limited company as it ensures his personal assets are safe.

[Haiderabbas]

KN: Forming a private limited company gives limited liability and better access to investors.
APP for e.g... a startup registers as an Ltd so investors can buy shares and founders personal assets are protected from business debts.
AN: This shows limited liability lowers personal financial risk for founders. Selling shares makes it easier to raise finance and attract investors. Lesser risk so more investment.

[Fatima ibtehaj]

[KN]Limited liability protection.
[APP]If a client sues a persons business for a faulty product or unpaid taxes arise, she wants to protect her personal savings and home. By setting up a private limited company, her liability is limited to the amount she invests in the company.
[AN]If the business incurs debts or legal claims, the entrepreneur’s personal assets (like a house or car) are generally not at risk which reduces personal financial risk and hence helps to develop brand image for that business leading towards a large consumer base

[Mahnoor satti]

[KN] As it has limited liability.
[APP] It is when a business fails the owner will not loss his personal assets like house but only those he had invested in to the business.
[AN] Thus this reduces personal financial risk and let the owner invest at much as they can without any worry leading to the business having more chances of growth.

[Shuraim Arif]

(KN) A private limited company provides the entrepreneur with an advantage of limited liability.
(APP) This means that the business and the entrepreneur are treated as a separate entity, which is very useful. For example, the entrepreneur fails to pay back a loan to the bank. The bank, in this case, the bank cannot seize the owner's personal assets since their business is a limited liability.
(AN) This relieves the entrepreneur as they feel more secure and cannot legally have their personal assets seized due to failure in repaying a loan.

[sarah_naeem]

[KN]: Entrepreneurs might choose private limited company as it provides them with an advantage of limited liabilities.
[APP]: For example, if a private Ltd. company has debts, the owner/entrepreneur would not have to risk his/her personal assets but instead would just be putting the money invested in shares at risk.
[AN]: Thus, this reduces the financial risk of the entrepreneur which encourages them for more investment to make the business better which will attract more customers also increasing sales.

[Amina Rizwan]

[KN]A reason why an entrepreneur might want to set up a private limited company may be because they will have the benefit of limited liability
[APP] For example if the owner of the business fails to pay their debt their personal asset will not be at risk such as their car or house.
[APP]this will help encourage the owner to invest more in the business as there is a reduction in the risk of there personal finance subsequently leading to growth of the business thus enhancing the cash inflows of the business.

[M huzaifa jillani]

(KN)
A private limited company (Ltd) gives owners limited liability.
(APP)
For example if the company fails the entrepreneur only loses the money they put into the business not their personal house or car.
(AN)
This makes starting the business less risky so the entrepreneur feels safer to invest more money.in the long run this can also help the entrepreneur raise finance from family and friends by selling shares which supports growth of the business.

[Ruqyia Salman]

[KN] One reason is that a private limited company offers limited liability to its owners.[APP] For example, if the business fails and has debts, the entrepreneur only loses the amount they invested and not their personal assets like their house or car.[AN] This reduces financial risk and makes it safer for the entrepreneur to take business decisions and attract investment from family and friends.

[Ruqyia Salman]

[KN] One reason is that a private limited company provides limited liability to its owners.
[APP] For example, if the company faces losses, the entrepreneur only risks the money invested in the business and does not lose personal assets like their house or car.
[AN] This reduces financial risk and encourages the entrepreneur to take business opportunities more confidently, making it easier to grow the business.

[Uqbah hadeed kayani]

[kn] An entrepreneur may choose a private limited company to protect their personal finances from business debts.
[app] For example, someone launching a clothing brand might register it as an Ltd to avoid losing personal assets if the business fails.
[an] This reduces financial risk, builds investor trust since liability is limited, and allows easier access to funding for growth and expansion.

[AliAzeem]

[KN]Limited liability.
[APP]For example if a business fails ,the owner doesn't have to recover the loss by paying his personal assets.
[AN]This encourages the owner to take risks and invest more which leads to higher market share resulting in growth.