Business Studies:
Private Limited Companies:
Aprivate limited companies is a business with limited companies where only a few individuals own shares, it is
known as the shares.
chacteristics:
Private limited companies are owned by shareholders who invest their capital by purchasing shares in the
business.
Owned by shareholders
Run by Directors,
Differences between Itd and ple
Ltd
Displays Ltd after their name
Can only sell shares if all shareholders agree on it.
Cheaper to trade.
Plc
Displays plc after their name
sells shares on the market for anyone to buy
Expensive to trade.
Pros for the Ltd:
The shareholders are often the directors.
The owners can maintain direct control.
Cons of Ltd:
It can be difficult to grow
Setting up is usually expensive.
Pros for Plc:
The most capital can be raised in PLC
Plcis less risky to loan money to
The plcin their name is attractive to customers.