Question

Write two differences between Business

Answer 1

Answer:

Explanation:

Companies come in numerous forms, including business entities that aim to make a profit, voluntary associations like non-profit organisations and financial entities like banks.

Public limited company (PLC) - A public company is a corporation where ownership is open to the public; therefore, anyone can purchase shares in the stocks. With a limited company, the individual’s financial liability is restricted to a fixed sum, which tends to be the value of their investment. PLCs are a combination of these concepts. They are public companies, where the shareholders are accountable for their financial liabilities based on their investment.

Private company limited by shares (LTD) - A private company differs to a public company in that it can’t be owned by members of the public. Instead, it’s owned by a small group of shareholders or a non-government organisation (NGO). Like PLCs, these companies are limited, so, once again, an individual only bears responsibility for financial liabilities based on their investment.