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Companies

Public limited company (PLC)

Shareholders may focus on the short term

May lose control of the business

May be vulnerable to takeover

Greater admin costs

Must keep a wide range of people informed

Cost of floatation is high

May have better reputation from Stock listing

May have even better access to credit and very large amounts of finance

Limited Companies ( LTD)

Shares can only be sold privately

Must conform with extensive formalitiestakes up management time

Accounts must be audited

Funding growth easier

Wider range of borrowing opportunities

Company sued in own name

Financial risk for investors reduced

Shareholders of limited companies are often directors

Limited companies are often family owned

Gaining legal company status

issued with certificate of incorporation

Articles of association

frequency of meetings

roles of directors

rights of shareholders

Memorandum of association

athorised share capital

objectives

Company name

Have limited liability

Owner is only liablefor what they have invested in the business and no more

Are incorportated

Have a legal identity