Limited Companies

• Private Limited Companies (LTD) are companies owned by shareholders that are approved of by other owners.
• LTDs don't sell shares on the stock exchange.
• Advantages of LTDs: Limited liability; if one shareholder dies the company can continue trading; cheap to set up; can't be fully taken over.
• Disadvantages of LTDs: Has to publish accounts for the public to see; leadership isn't equal
• Public limited companies (PLC) have more than 20 owners and shares are sold on the stock market.
• Advantages of PLCs: Limited liability; easy to raise finance due to good reputation; can keep trading if a shareholder dies
• Disadvantages of PLCs: Expensive to set up; can be fully taken over; has to publish accounts for all to see; shared profits; difficult to make decisions; slow to adapt; unequal leadership