W and R toilet makes are thinking of expanding by becoming PRIVATE :: Business and Management Studies

W and R toilet makes are thinking of expanding by comely offstageLIMITED CO (LTD) evaluate this decision.I think that W and R should become a PLC because there are a lot ofadvantages to them there moldiness be at least two assignholders and thereMUST be at least one director while this is good that their only hasto at least two people shares cannot just be transferred freely, theirmust be some kind of agreement with the other shareholders so if youhave the majority expression it wont work her as everyone must agree. Theyare easy to set up they mainly have the flexibility of a sole traderand a partnership exclusively without the risks of unlimited liability. Smallprivate companies if successful can raise capital more(prenominal) easily theliability makes people want to set up in the company more and itseasier for it to borrow money as sole traders and partnerships oftenfind this very hard. One of the key advantages is that the businesswill not come seize if one of the partners (owners) decide to pull outas the owners can choose who they want to sell their products to(shareholders). But there are a few disadvantages except compared to asole partnership or trader lots less, people might be unwilling to buyshares, there is more control over how the business is run and it cansometimes be very hard for shareholders to get their money back whenthey want but its much less risky.Ed wood ltd needs to raise a very capacious amount of capital to build anew factory. It is thinking of becoming a PLC. Analyze this decision.Public companies must start out with at least 50,000 pounds there mustbe at least 7 shareholders but only 2 are needed to sign a Memorandumof Association and shares are sold to the public. Anyone can come andinspect the shares, but at the same time shareholders who want theirmoney back can simply just sell their shares back to the stock market.This makes people more willing to invest, large amounts of capital canbe gathered from just one organizati on large companies can be formedbut there is also a lot of competition. Nevertheless you are also ableto benefit from other companies from and from their economies of sale.Banks are also willing to give loans to companies who have a largeshare capital. Shareholders might not have very much power of havevery little influence and public companies are controlled by the lawbut in a public company you can check up on your stock and the