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 key financial reason why Leo Scott Smith decided to establish Tended Ltd as a private limited company is to ensure limited liability for the company's debts. This means that as a shareholder, he would not be personally liable for the company's financial obligations, protecting his personal assets in case the business fails. This structure also makes it easier to raise finance by issuing shares privately, appealing to potential investors who may be inclined to invest since their risk is minimized.