SlideShare a Scribd company logo
Features
 Must have Ltd after the company name
 Owners of private limited companies are
called shareholders
 The profit given to shareholders is called a
dividend
 Ran/Controlled by a Board of Directors
elected by shareholders
Advantages
 Shareholders have limited liability which
means that they will only lose the money
invested in the business and NOT their
personal belongings
 More capital (money) can be raised than sole
traders or partnerships
Disadvantages
 Profits have to be shared between all
shareholders
 Takes time and money to set up
 Not allowed to sell shares to the general
public on the Stock Market
 Certain information has to be registered and
made public which competitors could use to
their advantage

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4. Private limited companies - Bus Man CFE Higher

  • 1.
  • 2. Features  Must have Ltd after the company name  Owners of private limited companies are called shareholders  The profit given to shareholders is called a dividend  Ran/Controlled by a Board of Directors elected by shareholders
  • 3. Advantages  Shareholders have limited liability which means that they will only lose the money invested in the business and NOT their personal belongings  More capital (money) can be raised than sole traders or partnerships
  • 4. Disadvantages  Profits have to be shared between all shareholders  Takes time and money to set up  Not allowed to sell shares to the general public on the Stock Market  Certain information has to be registered and made public which competitors could use to their advantage