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Business forms - Coggle Diagram
Business forms
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Unlimited liability
If a business gains debts, goes bust or is sued this could be a problem for the owner
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Private limited company
Ltds can expand and grow by selling shares, they cannot be bought by the public.
Pros
Limited liability, can raise extra capital by selling more shares, has own legal status
Cons
Company is not private,expensive, cannot sell shares stock exchange
Public limited company
Once a limited company has grown and needs futher investment it may consider to become a PLC. Shares can be bought by anyone
Pros
Limited liability, can sell shares publicly, banks and investors more likely to lend cash
Cons
Expensive, must publish annual accounts, must have £50,000 in share capital before becoming a PLC