IGCSE, A Level Business Student Forum

(KN) Safeguard of personal assets
(AN) if a business fails and the debts of the business need to be paid the shareholders have limited liability meaning that they are only a custom to pay what they invested and hence don't lose their assets for compensation,
(AN+) hence due to this the shareholders personal assets are safeguarded through limited liability as they don't have to be given up to pay the business debts or to creditors.

(KN) Shareholder will get more returns
(AN) because of this, the shareholder will be much more encouraged to further invest in the business,
(AN+) hence by investing more, the business may see the shareholder as something valuable and may not want to let him go, and hence give them bonuses, which will further increase their returns.

[kn] prevents confiscation of personal assets
[an] since theyre only held liable for what theyve invested in
[an+] this ensures a sense of security and safety in the worst case senario

[kn] business growth
[an] a limited liability company can readily obtain additional capital by issuing shares to shareholders
[an+] this will encourage expansion

[KN] induvial profiling of investment in the company
[AN] doesnt affect the shareholders personal life
[AN+] Therefore, leading to less pressure on SH's leading to efficient decision making

[KN] Personal Assets are safe hence more risks can be taken
[AN] Higher risks leads to higher returns especially when unincorporated businesses are hesitant to invest in certain areas
[AN+] giving them a competitive advantage over other firms & getting increased market share.