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Advantages and disadvantages of limited liability companies - Coggle…
Advantages and disadvantages of limited liability companies
Advantages
Economies of scale
Productivity
Likely to employ specialist staff increasing productivity levels, resulting in improved efficiency and profitability.
Continuity
Tax benefits
Limitied liability
Easier to attract investors
Raising finance
Disadvantages
Loss of control
Which leads to potential misalignment with their vision, eventually resulting in reduced operational efficiency or conflicts in management
Communication problems
Causing delays in decision-making, ultimately impacting productivity and profitability.
Added complexities
Compliance costs
Increase operational expenses, reducing profitability, which limits reinvestment and stifles growth opportunities.
Bureaucracy
Disclosure of information
Time consuming and expensive as auditors have to be hired