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5 Analyse the advantages of private limited company. [6]
Posted: Mon Oct 30, 2023 10:53 pm
by Sir Afzal Shad
Q5 Analyse the advantages of private limited company. [6]
Possible Structure:
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Re: 5 Analyse the advantages of private limited company. [6]
Posted: Tue Oct 31, 2023 8:36 pm
by 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
Re: 5 Analyse the advantages of private limited company. [6]
Posted: Tue Oct 31, 2023 9:59 pm
by 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.
Re: 5 Analyse the advantages of private limited company. [6]
Posted: Tue Oct 31, 2023 10:48 pm
by 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.
Re: 5 Analyse the advantages of private limited company. [6]
Posted: Thu Nov 02, 2023 12:11 am
by 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.
Re: 5 Analyse the advantages of private limited company. [6]
Posted: Thu Nov 02, 2023 5:56 pm
by 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
Re: 5 Analyse the advantages of private limited company. [6]
Posted: Thu Nov 02, 2023 6:00 pm
by 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.
Re: 5 Analyse the advantages of private limited company. [6]
Posted: Thu Nov 02, 2023 9:34 pm
by 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.
Re: 5 Analyse the advantages of private limited company. [6]
Posted: Fri Nov 03, 2023 12:18 am
by 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
Re: 5 Analyse the advantages of private limited company. [6]
Posted: Sun Nov 05, 2023 9:53 am
by 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
Re: 5 Analyse the advantages of private limited company. [6]
Posted: Sun Nov 05, 2023 9:55 am
by Ibrahim Aamir
Syed Mustafa Ali wrote: ↑Tue Oct 31, 2023 10:48 pm
[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
Re: 5 Analyse the advantages of private limited company. [6]
Posted: Sun Nov 05, 2023 9:54 pm
by Syed Mustafa Ali
Ibrahim Aamir wrote: ↑Sun Nov 05, 2023 9:55 am
Syed Mustafa Ali wrote: ↑Tue Oct 31, 2023 10:48 pm
[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
Re: 5 Analyse the advantages of private limited company. [6]
Posted: Tue Nov 07, 2023 6:35 pm
by 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
Re: 5 Analyse the advantages of private limited company. [6]
Posted: Wed Nov 08, 2023 1:44 am
by 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.
Re: 5 Analyse the advantages of private limited company. [6]
Posted: Fri Nov 10, 2023 4:48 pm
by Salman Khalid
Kumail Alvi wrote: ↑Thu Nov 02, 2023 12:11 am
[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