Which of the following is a disadvantage of a Limited Company (LTD)?

A Limited Company (LTD) does face legal requirements as one of its disadvantages. Establishing and maintaining a limited company involves adhering to specific regulations, such as filing annual accounts, providing detailed financial records, and ensuring compliance with company law. This regulatory burden can be time-consuming and may require hiring legal or financial professionals, increasing operational costs.

In contrast, shared profits can be seen as a structural aspect of how a company operates and distributes its income to shareholders, which is not necessarily a disadvantage by itself. Unlimited liability is associated with sole traders or partnerships rather than limited companies, where liability is restricted to the amount invested in the company. Lastly, the ability to sell shares to the public is typically a benefit of being a larger organization, as it allows for greater capital accumulation and investment opportunities, distinguishing LTDs from sole proprietorships or partnerships. Thus, while the legal requirements provide necessary oversight and governance for LTDs, they also represent a layer of complexity and cost that can be burdensome for business operations.