1. (a) 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 Leo Scott Smith decided to establish Tended Ltd as a private limited company is to take advantage of limited liability. A private limited company protects shareholders' personal assets, meaning that if the company faces financial difficulties or debts, the shareholders are only liable to the extent of their investment in the company. This structure can encourage potential investors to provide funds, as they are reassured their personal finances are safeguarded.