10 Questions
What is the advantage of a public company in terms of raising funds?
Unlimited source of raising fund through public
What is a disadvantage of setting up and maintaining a public company?
Difficult legal requirements and high cost of formation
How does the movement of shareholders affect the existence of a company?
The existence of the company continues to exist
What is one advantage of a private company?
Private companies can raise capital through internal sources.
How does the restriction on transferability of shares affect private companies?
It limits the transferability of shares if not provided for in the Articles of Association.
Why can't private companies issue prospectus to the public?
Private companies are not allowed to issue prospectus to the public.
What is a disadvantage of private companies in terms of financial liquidity?
Private companies have less financial liquidity due to restrictions on membership numbers.
What is one advantage of a private company over a public company?
Secrecy can be maintained in a private company due to limited disclosure requirements.
How does government intervention affect the operations of public companies?
Government intervention can slow down and decrease the flexibility of public company operations.
What is a key difference between a public company and a private company in terms of share transferability?
Shares of a public company are freely transferable, while shares of a private company are not freely transferable.
Learn about the advantages of a public company, including separate legal entity, unlimited source of raising funds, and easy transferability of shares. Understand how these factors make public companies unique and beneficial for investors and shareholders.
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