Capital individualistic
Classified in Economy
Written at on English with a size of 975 bytes.
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PRIV.LIM.COM: -it´s a comp that cannot raise share capital from general public.-shares are sold to private family members&friends.-shares cant be fraded whithout the agreement of the BOD, so that directors can mantain controll of the company.-many are run as family bussineses.-will usually have the letters limited(LTD).
PUB.LIM.COMP:- is able to advertise & sellits sharesto the general public, via a stock engine.-it usually have the words PLC or INC. ADVAN:-raising capital.-limited liability.-continuity.-economies of scale.-productivity.-tax benefits. DISAD:-comunication.-complexity.-compliance costs.-disclosure of financial info.-burecracy.-loss of control.