Explain one financial reason why Leo Scott Smith decided to establish Tended Ltd as a private limited company - Edexcel - A-Level Business - Question 1 - 2022 - Paper 2

One financial reason for establishing Tended Ltd as a private limited company is to benefit from limited liability. This means that the company is a separate legal entity, and its shareholders are protected from personal liability for the company's debts. As a result, an investor's personal assets are not at risk, encouraging more potential investors to finance the business. This is particularly important for Tended Ltd, which is a small and rapidly expanding company in the competitive wearable technology market, as it needs to raise capital to develop its innovative device, the 'Tended Protect'.