Wednesday, 11 January 2012

what are the advantages and disadvantages of a private limited company?ges of a public limited company?

ADVANTAGES
  • limited liability
  • increased capital as public can buy shares
  • min of 2 directors + 2 shareholders
  • shares increase in value if company sucessful 
  • operating large scale can lower cost per unit
DISADVANTAGES
  • many regulations to comply with
  • accounts (and problems) are public knowledge
  • shareholders may sell shares of dividends porr
  • original owner may lose overall control

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