private limited company

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  • Private Limited companies
    • Advantages
      • shareholders have limited liability
      • separate legal identity
      • business is never ending, continuity
      • original owner still often able to retain control
      • able to raise finance from selling shares to family and friends
      • greater status than an unincorporated business
    • Disadvantages
      • legal formalities involved in opening up a buisness
      • capital restricted as shares cannot be sold publicly
      • Quite difficult for shareholders to sell shares
      • end of year accounts must be sent to companies...less secrecy than sole trader or partnership

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