Which of the following is NOT a characteristic of a limited company?

In the context of a limited company, the defining characteristic is that the owners, or shareholders, have limited liability. This means their personal assets are protected from the company’s debts; they are only liable for the amount they have invested in the company. Therefore, the option indicating that owners are personally liable for business debts does not align with the principles of a limited company structure.

In contrast, the other choices accurately reflect the characteristics of limited companies. Owners receiving dividends corresponds to the profits being distributed among shareholders. The necessity for strict adherence to accounting standards ensures transparency and compliance with legal requirements, which is vital for maintaining investor confidence and meeting regulatory obligations. Additionally, having accounts audited by external parties is common practice, providing an extra layer of oversight to ensure that financial statements are accurate and fair.