Private Limited company Flashcards
1
Q
Private limited companies
Advantages
Disadvantages
A
Private limited companies cannot sell their shares on the stock market
They are often owned by people who know each other such as family and friends
They are usually smaller than public limited companies
Advantages- more capital raised by selling shares
The owners have limited liability
Disadvantages - the profits have to be shared between the shareholders
It is slower and more expensive to set up then a sole trader or partnership
The original owners can lose control if they own less than 50% of the shares
Anyone can find out the financial position of the company from companies house
