Question

Raman wants to start a company and asks his father who is a businessman to explain the difference between a private company and a public company to him. He gets confused when his father tells him that 'A Public company means a company which is not a private company.' In the light of the above statement, explain the three differences between a private and a public company to Raman

Answer 1

capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit". While definitions of entrepreneurship typically focus on the launching and running of businesses, due to the high risks involved in launching a start-up, a significant proportion of start-up businesses have to close due to "lack of funding, bad business decisions, an economic crisis, lack of market demand—or a combination of all of these. A broader definition of the term is sometimes used, especially in the field of economics. In this usage, an Entrepreneur is an entity which has the ability to find and act upon opportunities to translate inventions or technology into new products: "The entrepreneur is able to recognize the commercial potential of the invention and organize the capital, talent, and other resources that turn an invention into a commercially viable innovation." In this sense, the term "Entrepreneurship" also captures innovative activities on the part of established firms, in addition to similar activities on the part of new businesses.

Answer 2

Hi friend,

The difference between a private company and a public company is stated below;

Public company: It a type of company whose shares can be traded publicly at any point in time of turmoil. Usually public oriented stated bear more public companies.

Private company: Companies who's owners are individuals and the belongs solely to them and later to their heirs or who ever they want their owners to be. These companies have investors too which invest and gain profits.

I hope the answer is helpful.

Thanks for asking.