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Introduction to Entrepreneurship (Adavantages of being entreprenuer…

- - - - Wide scope of business activities such as creating, innovating, improving goods and services.
      - Expended business
  - - - Narrow scope of business activities on selling and buying
      - Profit oriented
- - - - Owned by a group of people with at least two or more individuals but not exceeding 50 people who pool their capital and work together to form a company
      - The 50 member limit for a private company does not include employees its subsidaries
      - The shares cannot be sold to the general public
      - Advantages of a Private Limited Company
        
        Shareholders are not liable for the company's debts beyond the amount ofvshare capital they have subscribed
        
        Shareholders rights are protected by law
        
        Easy access to financing from financial institutions
        
        The life span is not affected by the death or withdrawal of any of its members
        
        Easier to transfer ownership, either wholly or partially, through the selling of all or parts of its total shares or through the issue of new shares to additional investors (max 50 shareholders)
        
        Disadvantages of a Private Limited Company
  - - - Perpetual life: the company has a separate and distinct life from that of its owners and can continue for an indefinite period
      - Transfer of ownership: can be transferred through the sales of stock to interested buyers
      - Ease of expansion: has great potential for expansion
      - Increase in ability abd expertise: ranging from major stockholders to professional managers who expertise and skillful
      - Disadvantages
        
        High set up costs
        
        High taxation
        
        Financial disclosure
        
        Regulations where government regukations and reports are required by the state or federal agencies which often result in a great deal of paperwork and bureaucracy