Please enable JavaScript.
Coggle requires JavaScript to display documents.
private limited companies- companies that are owned by shareholders who…
private limited companies- companies that are owned by shareholders who cannot sell their shares to the public
-
-
shareholders - owners of a limited company. they buy shares which represent part-ownership of the company
advantages
-
shareholders have limited liability(liability of shareholders ina limited company is limited to the amount they invested)
shares can be sold to family and friends , which will increase the capital of the business that could be inested back into the business and thus the business can expand
disadvantages
-
the accounts of the company are available to the public to see which is less secretive compared to other business organizations like sole propreitorship or partnerships
the shares of the company cannot be sold to anyone else which means that people will be reluctant to invest in this type of business because they may not be able to sell their investments quickly if they require their investments back
the share of the priate company cannot be sold to the general public so we cannot raise a huge sum of money
-
-