NOT-FOR-PROFIT ORGANISATIONS - ASSOCIATION OR COMPANY LIMITED

Mike and Gita asked their solicitor to explain the advantages and disadvantages of a private limited company for their taxi firm Advantages 1 Selling shares to a large number of people will raise large amounts of capital 2 All shareholders have limited liability 3 The company is a separate legal identity from its shareholders 4

12 Types of Organisation Summary Notes

A Public Limited Company is a company that is able to advertise and sell its shares to the general public via the stock exchange They must carry the letters PLC after their name to indicate that it is a Public Limited Company A disadvantage is that there is a dilution of control as the company has more owners (and voters) which thereby weakens shareholders’ ability to control the business Public companies often raise more share capital than

TYPES OF OWNERSHIP SINGLE OWNERSHIP Advantages: Disadvantages

(b) Public Limited Company (i) In Public limited company, the capital is collected from the public by issuing shares having small face value (Rs 50,20,10) (ii) The number of shareholders should not be less than seven, but there is no limit to their maximum number (iii) A public limited company has to file with the Registrar of Joint Stock

0450 BUSINESS STUDIES - XtremePapers

1 (a) The Directors of EE recently converted the business from a private limited company to a public limited company Explain two possible benefits and two possible drawbacks to this business of the change [10] Content: Advantages of a plc – can sell shares to the public; rapid expansion possible

SNIB019 ECONOMY, ENERGY AND FAIR WORK COMMITTEE SCOTTISH

1 What are the advantages or otherwise in establishing the Bank as a public limited company? The advantages of this model can be summarised as follows: • There are potentially more avenues available to raise capital, through share issuance • It possesses a more effective decision-making structure, through a single Board, with

Business Structures - CA Sri Lanka

Companies Limited by Shares These companies treated as public companies in which shares being issued to the public At least 03 directors and 01 shareholder require to establish and liability of the shareholders limited to the value of shares being purchased/contributed Note: Total share capital may consists of ordinary & preference shares