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private limited companies- companies owned by sharehloders who cannot sell…
private limited companies- companies owned by sharehloders who cannot sell their shares to the public
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limited liability- the liability of the shareholders of a limited company is limited ot the amount they invested
shareholders - are owners of a limited company. they buy shares which represent part-ownership of that company
advantages
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shares can be selled to family and friends. this will brong a huge sum of money into the business as capital which can be invested into the business, this will result in the business expansion
disadvantages
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shares can only be selled to family and friends.peolpe will be reluctant to buy shares as they may not be able to sell them quickly if they need their investment back
business has to publish its accounts to the public to ee which means its les secretive compared ot sole proprietorship and partnership type of businesses
the shares of the business cannot be sold to the general public. therefor it is not possible ot raise a huge sun of money
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