private limited company - LTD

• What is a Ltd and who may expand?

  Sole traders may expand - owners control who buys the shares and cannot be brought by the public
• two advantages of LTD?

  Limited liability

  Can raise extra capital by selling more shares
• Two disadvantages of an LTD?

  Accounts of the business cannot be kept private

  More expensive and difficult to set up
• Private limited company?

  Can raise finance through share capital - new shareholders have to be approved by existing owners

  Do not have to please public shareholders by growing - can focus on quality to compete

  Hans wilsdorf prevented being owned by another business by setting up the foundation