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COMPANY - Coggle Diagram
COMPANY
Ltd (Private Limited Companies)
Weaknesses
Need the Companies house registration.
Share profits: share the money gained for more people (shareholders).
Expensive to set up.
Strengths
Minimizes the personal liability: personal protection that does not take properties away, only the money that was invested.
Investment and lending opportunities: multiple shareholders, which is more capital for the company.
Professional career: for a person is better a LTD as it is a more professional-looking image.
PLCs (Public limited companies
)
Strengths
Raise additional finance through share capital.
Shareholders have limited liability.
There are greater opportunities to negotiate in terms of prices because larger companies can achieve economies of scale.
Weeknesses
To expensive to set up.
The company can't control who buys its shares because of the risk of an unfavorable takeover by a rival company.
Usually the shareholders have conflicts when they are making decisions about the company.
References
Bitesize. (n.d).
Business ownership
. Retrieved on december, 9, 2021, from
https://www.bbc.co.uk/bitesize/guides/zdc6mfr/revision/4
Fleming, C. (2021). PLC vs LTD: advantages & disadvantages. Recovered on December 9 of 2021, from
https://businessadvice.co.uk/strategy/plc-vs-ltd-advantages-disadvantages/
Names:
Daniela Carrillo and Isabella Reinoso