5 Analyse the advantages of private limited company. [6]

[Sir Afzal Shad]

Q5 Analyse the advantages of private limited company. [6]

Possible Structure:
[KN]
[AN]
[AN+]

[KN]
[AN]
[AN+]

[Shaliza khawaja]

(kn)owner can retain control
(an) main owner can buy back shares of a company
(an+) which would make him the main shareholder this time
(kn)higher business profile
(an) it will raise trust in your business
(an+)leading to less conflicts,internally and externally investors could be attracted

[Farzan Siddiqui]

[KN] Shares can be sold to a large number of people.
[AN] The sales of shares would lead to much larger capital invest in the business.
[AN+] This would result in growth of the business.
[KN] Limited liability.
[AN] This means if company fails to pay the debts, the would not be forces to sell their possessions.
[AN+] This would lead to more savings to private limited companies.

[Syed Mustafa Ali]

[KN] Limited liability
[AN] This means that the personal assets of the shareholders are protected in case the company incurs debts or faces legal issues.
[AN+] Shareholders are only liable for the amount they have invested in the company, and their personal assets are not at risk.

[KN] Ease of capital generation
[AN] Private limited companies have the flexibility to raise capital through the issuance of shares to a select group of individuals or entities.
[AN+] This makes it easier for the company to attract investors and grow its financial resources.

[Kumail Alvi]

[KN] Businesses can easily raise capital easily
[AN] Private limited companies can sell shares easily to raise capital.
[AN+] This saves businesses from failing due to lack of capital.

[KN] Professional Management.
[AN] Pvt Ltd companies mostly have a board of directors who have the most decision-making authority and none of the decisions can be passed without the approval of most of the directors.
[AN+] This helps businesses grow as more brains are invested in the business and more ideas are generated.

[ayyan ali]

[KN]Separate from business.
[AN]can raise capital by selling shares to investos without going into public'
[AN+]this allows the business to attract funding for the expansion and development'

[KN]Can create more professional image in the business.
[AN]this can be advantageous when dealing with client ,customer and other business,
[AN+]thud business can further raise capital by this

[Salman Khalid]

[KN]Separate Legal Entity
[AN]This separation of the business from its owners allows for continuity of operations even if there are changes in ownership or management
[AN+]it also enables the company to enter into contracts, own property, and take legal action in its own name.

[KN]Transferability of Shares
[AN] This provides a degree of flexibility for shareholders who may want to buy or sell their shares
[AN+]It can also make the company more attractive to potential investors, as they have the option to exit or enter the company relatively easily.

[Syed Raza]

[KN] Separation of Ownership
[AN] In a private limited company ownership can be separated. Shareholders can appoint professional managers to run the company.
[AN+] which can lead to more efficient and professional management.

[KN] Limited Liability
[AN] This means their personal assets are separate from the company's finances and in case of legal issues finances are protected.
[AN+] Shareholders are only liable for the amount they have invested in the company, and their personal assets are not at risk.

[Talha Asim]

(Kn) limited liability (an) this means the owners are limited to what they invest and wont be held responsible for debts of the business (an+) this will encourage investment as investors wont be afraid of taking the fall if the business fails

(Kn) more investment (an) since the it is a limited company people will invest into the business, more investment hence more funds hence more spending (an+) this will encourage the firms the company can use the investment for new business ventures

[Ibrahim Aamir]

[KN] additional capital
[AN] by selling shares to the other people they can gain addition capital
[AN+] this would help the business to cover up their basic expenses

[KN] limited lability
[AN] this means that if the business faces loss or goes in debt then the share holders assets are totally safe they can not be effected
[AN+] this would be beneficial for the business as this would encourage shareholder to invest more

[Ibrahim Aamir]

[KN] Limited liability
[AN] This means that the personal assets of the shareholders are protected in case the company incurs debts or faces legal issues.
[AN+] Shareholders are only liable for the amount they have invested in the company, and their personal assets are not at risk.

[KN] Ease of capital generation
[AN] Private limited companies have the flexibility to raise capital through the issuance of shares to a select group of individuals or entities.
[AN+] This makes it easier for the company to attract investors and grow its financial resources.

This first point is incorrect as you wrote it to the perspective the shareholder rather then the business

[Syed Mustafa Ali]

[KN] Limited liability
[AN] This means that the personal assets of the shareholders are protected in case the company incurs debts or faces legal issues.
[AN+] Shareholders are only liable for the amount they have invested in the company, and their personal assets are not at risk.

[KN] Ease of capital generation
[AN] Private limited companies have the flexibility to raise capital through the issuance of shares to a select group of individuals or entities.
[AN+] This makes it easier for the company to attract investors and grow its financial resources.

This first point is incorrect as you wrote it to the perspective the shareholder rather then the business

It wasn't specified to whom perspective the advantages were it didn't specify The advantages could be to the owner, the employees or the shareholders

[hafsa kashif]

[kn] shares can be sold toa larger number of people
[an] which provides additional capital
[an+] which helps business cover up basic expenses
[kn] as long too many shares are not sold the owners of the business can keep control of the operations
[an] this provides them with power over the company
[an+] leading to operations taking place according to their personal choices

[Hadia Zia]

[KN] Capital Raising.
[AN] It can raise capital by issuing shares to investors which can encourage further fund collection.
[AN+] Thus this will help increase growth and provide expansion opportunities.

[KN]Limited Liability
[AN]It means the owners’ assets are secure in the event if the company is sued or incurs debt.
[AN+] Thus this will provide a degree of financial security.

[Salman Khalid]

[KN] Businesses can easily raise capital easily
[AN] Private limited companies can sell shares easily to raise capital.
[AN+] This saves businesses from failing due to lack of capital.

[KN] Professional Management.
[AN] Pvt Ltd companies mostly have a board of directors who have the most decision-making authority and none of the decisions can be passed without the approval of most of the directors.
[AN+] This helps businesses grow as more brains are invested in the business and more ideas are generated.

again, both analysis points are an explanation instead of an impact