0452.5.3.01 — explain the advantages and disadvantages of operating as a limited company: past paper questions
Real questions on 0452.5.3.01 — explain the advantages and disadvantages of operating as a limited company
The newest 10 of 10 written questions. Open one to see it on the real paper.
- 0452/02 · Specimen 2027 · Q5a[2]
two advantages to the company of operating as a limited company rather than as a partnership.
See it on the paper → - 0452/02 · Specimen 2027 · Q5b[1]
one disadvantage to the company of operating as a limited company rather than as a partnership.
See it on the paper → - 0452/22 · May/June 2025 · Q2d[5]
Advise Farah and Salma whether or not they should make the above changes. Justify your answer with advantages and disadvantages to them of making these changes.
See it on the paper → - 0452/11 · May/June 2024 · Q25[2]
Which apply to both debentures and preference shares?
See it on the paper → - 0452/23 · October/November 2023 · Q5d[5]
Advise the directors whether they should issue debentures or ordinary shares. Justify your answer.
See it on the paper → - 0452/22 · May/June 2023 · Q4d[5]
Advise Akila and Darius whether they should form a limited company. Justify your answer with two advantages and two disadvantages of Akila and Darius forming a limited company.
See it on the paper → - 0452/23 · May/June 2023 · Q4d[5]
Advise Akila and Darius whether they should form a limited company. Justify your answer with two advantages and two disadvantages of Akila and Darius forming a limited company.
See it on the paper → - 0452/22 · February/March 2023 · Q5d[5]
Advise Samir and Punita whether they should convert the business to a limited company. Justify your answer with two advantages and two disadvantages of converting the business to a limited company.
See it on the paper → - 0452/22 · February/March 2022 · Q5d[5]
Advise Priti and Paisley whether or not they should form a limited company. Justify your answer with two advantages and two disadvantages.
See it on the paper → - 0452/21 · May/June 2020 · Q3(d)[4]
Advise Chippo whether or not she should convert her business to a limited company, in order to obtain finance. Justify your answer by providing advantages and disadvantages.
See it on the paper →
What examiners said
This question had a wide range of possible answers ranging from easier to raise capital, limited liability, reduced workload, the potential for losing control of the business and increased legal and administrative costs. Weak answers were too general and phrases such as ‘higher costs’ and ‘more expensive’ needed a rationale that supported them; for example, due to higher salaries and the need to p...
— Examiner report, May/June 2025, 0452/22 Q2(d) (Cambridge)
The consideration of changing a partnership into a limited company was well attempted with standard advantages such as limited liability and separate legal entity being popular answers. A key point in this question was the fact that the two partners would be the only shareholders in the company. This was missed by many and discussions of selling additional shares to the public or family and the po...
— Examiner report, May/June 2023, 0452/22 Q4(d) (Cambridge)
The consideration of changing a partnership into a limited company was well attempted with standard advantages such as limited liability and separate legal entity being popular answers. A key point in this question was the fact that the two partners would be the only shareholders in the company. This was missed by many and discussions of selling additional shares to the public or family and the po...
— Examiner report, May/June 2023, 0452/23 Q4(d) (Cambridge)
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