Question

State the limitations of a private company.​

Answer 1

Answer:

The limitations of private company are as follows:

i)In case of a insurance company or investment mostly public do not trust easily.

ii)They have smaller resources.

iii) Registration of private company limited by shares takes a longer period and involves a process and cost which are not applicable to sole proprietorship and business names.

iv) Lack of transferability of shares.

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