What is the term used for "Private Limited Companies"
PLC
LTD
What are the 2 advantages of Limited Liability Companies
More capital can be raised
May be able to dominate the market
Business will continue if a shareholder dies
Shares can be bought and sold easily
What is meant by the term "Limited Liability"
Owners have to pay the debts with their own money
Owners does not have to pay debts with their own money
What makes a 'Going Public' process expensive
There are advertising and administrative expenses
Companies has to be big enough to be a public company and it requires money
What are the 2 disadvantages of Public Limited Companies
Setting up costs can be very expensive
More regulatory control due to Company Acts.
Profits have to be shared between more members
Takes time to transfer shares to new owner
What is a 'Joint Venture'
Two or more companies share the costs and responsibilty
Two or more companies merge both of the company's share
What are the disadvantages of 'Joint Venture'
Disagreement may occur about the management
They have to split the profit between investor
Takeovers are very expensive
What are the advantages of Joint Venture
Competitions may be eliminated
Each business can specialize in their own aspects
Joint Venture have low chance of succeeding
Which one is a Public limited company
Facebook
AMC (TV company)
What does 'Flotation' means
The process of 'Going Public'
The value of the share increases
