Private Limited Companies - Advantages and disadvantages table in GCSE Business Studies

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Created by: maddypayneee_
Created on: 03-10-16 21:33

Private Limited Companies

Advantages

The big advantage over sole traders and partnerships is limited liability - you can't lose more than you invest.
Being incorporated, the company can continue trading after a shareholder dies - unlike partnerships.

Disadvantages

They're more expensive to set up than partnerships because of all the legal paperwork you have to do.
Unlike sole traders or partnerships, the company is legally obliged to publish the accounts every year.

Evaluation

Private means that shares can only be sold if all the shareholders agree. The shareholders are often all members of the same family. Private limited companies have Ltd. after their name.

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