1.2.2 Private Limited Companies 0.0 / 5 ? Business1.2.2 Private Limited CompaniesA2/A-levelAQA Created by: ZruixxCreated on: 16-04-23 22:08 What are Private Limited Companies? Companies where ownership of shares is restricted. For the company to sell shares, all the current shareholders must agree to sell them 1 of 5 What are the Advantages of PLCs? - Limited Liability - Owners retain a lot of control over how the business is managed - Easy to get a loan 2 of 5 What are the Disadvantages of PLCs? - Finance is needed to incorporate a business - Company is legally obliged to publish their accounts each year 3 of 5 What are the Advantages of Selling Shares? - Allows companies to raise money for investment - Easier for companies to raise money from banks as they present less risk 4 of 5 What are the Disadvantages of Selling Shares? - Owners have little say over how the business is run - Anyone can take over the company if they are able to buy enough shares 5 of 5
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