Question

if the A and N partnership business continues, recommend wheather a private limited company is a suitable form of legal structure for the business, Justify your answer by considering the advantages and disadvantages of a private limited company.​

Answer 1

Answer:

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Answer 2

Answer:

Advantages of Private Limited Company

• No Minimum Capital
• Separate Legal Entity
• Limited Liability
• Fund Raising
• Free & Easy transfer of shares
• Uninterrupted existence
• FDI Allowed
• Builds Credibility

Disadvantages of Private Limited Company:

• One of the main disadvantages of a Private Limited Company is that it restricts the transfer ability of shares by its articles.
• In a Private Limited Company the number of shareholders in any case cannot exceed 50.
• Another disadvantage of Private Limited Company is that it cannot issue prospectus to public.
• In stock exchange shares cannot be quoted.