Private limited company
- Created by: megangore
- Created on: 30-03-16 12:37
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- Private limited company (LTD)
- definition
- a company in which a number of shareholders (no more than 50) contribute funds to the company in return for shares. shares can't be sold on the stock exchange
- advantages
- the business has limited liability
- easier to raise capital than partnership or sole traders as shares can be sold to a large number of people
- partners can retain control of the company if they don't sell too many shares
- management is shared
- more specialisation can occur
- the business will still exist if one of the shareholders die
- disadvantages
- expensive to set up
- shares cant be sold to the public
- accounts have to be lodged with registrar of companies
- less privacy as members of the public can see them
- shares cant be sold without the agreement of the other shareholders
- definition
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