Question

A private company avoids many of the defects of a public company.explain.

Answer 1

A number of procedures and legal delays are exempted for private companies which are strictly followed in case of public companies hence,flexibility in operation.
A private company can be formulated with the composition of only two members and it only has to undergo two steps in the process of formation whereas a public company can starts its business only after getting its certificate of incorporation & it takes four steps hence ease of formation.