Similarities and differences between PLC's and LTD's.


	Similarities and differences between PLC's and LTD's.
	Similarities Both have limited liability. Tax benefits. Raising finance - banks will be more willing to lend becuase the status of the company in increased. Business continuity. Protecting the business name.	Differences Sale of shares - in a plc they are sold openly on the stock exchange, whereas, with an ltd shares can only be sold to family and firends. Share capital - an ltd only reqquires £2 shrare capitall to start up whereas a plc requires £50,000 share capital. Control - in an ltd shareholders tend to be owners and managers and they have a tighter control of the business whereas, shareholders usually are differeent people to the owners and managers in a plc, this is known as a 'divorce of control form ownership'. Number of shareholders - plcs are more likely have have a lot more shareholders, this is because they tend to be bigger companies and there is a wider availability of shares.
	Overall comparison

Both have limited liability.
Tax benefits.
Raising finance - banks will be more willing to lend becuase the status of the company in increased.
Business continuity.
Protecting the business name.

Sale of shares - in a plc they are sold openly on the stock exchange, whereas, with an ltd shares can only be sold to family and firends.
Share capital - an ltd only reqquires £2 shrare capitall to start up whereas a plc requires £50,000 share capital.
Control - in an ltd shareholders tend to be owners and managers and they have a tighter control of the business whereas, shareholders usually are differeent people to the owners and managers in a plc, this is known as a 'divorce of control form ownership'.
Number of shareholders - plcs are more likely have have a lot more shareholders, this is because they tend to be bigger companies and there is a wider availability of shares.

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