Private limited company

  • Created by: megangore
  • Created on: 30-03-16 12:37
View mindmap
  • Private limited company (LTD)
    • definition
      • a company in which a number of shareholders (no more than 50) contribute funds to the company in return for shares. shares can't be sold on the stock exchange
    • advantages
      • the business has limited liability
      • easier to raise capital than partnership or sole traders as shares can be sold to a large number of people
      • partners can retain control of the company if they don't sell too many shares
      • management is shared
      • more specialisation can occur
      • the business will still exist if one of the shareholders die
    • disadvantages
      • expensive to set up
      • shares cant be sold to the public
      • accounts have to be lodged with registrar of companies
      • less privacy as members of the public can see them
      • shares cant be sold without the agreement of the other shareholders


No comments have yet been made

Similar Business resources:

See all Business resources »See all Ownership resources »