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private limited company and public limited company

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Introduction

M1 Mini Introduction In this unit of M1 coursework, I will be comparing between private limited company and public limited company. I have chosen Manchester United FC as an example of private limited company and Tesco for public limited company. I will be evaluating following things from both examples: * Ownership of the business * Liability of the business * Aims and objective of the business * Number of employees * How is profit shared Private Limited Company: Manchester United FC Public Limited Company: Tesco What is the ownership of the business? Manchester United FC is a profit making, private limited company. It is known as private sector as the shareholders of a particular family own it. These members of the family agree to pay specific amount of money in to the Manchester United FC. ...read more.

Middle

Then when business goes in debt then son will only have to pay �100. Tesco is a limited liability business. Therefore, the people who bought shares but have not paid for it will only have to pay for the shares and they bought. If Tesco goes in debt, their prices of the shares will decrease so when the shareholders sell the share they will make loss instead of profit. The liability of each shareholder is limited to any unpaid shares. Aims of the business? Aims of Manchester United FC will not be to make only profit but also to make the team better and building new and better stadiums. Aim of Tesco will be to make as much profit and to sell better quality products at low price. They will also aim to attract many customers as they can and sell as many shares as they can. ...read more.

Conclusion

If Manchester United FC makes profit, part of it also goes to the inland revenue as tax. Manchester United FC uses part of their profit to buy new players and a coaches When Tesco makes profit, the prices of its share will increase and so the people who have bought shares worth of any amount of money can sell those shares for profit. It would also be distributed among the shareholders as dividends. Tesco uses part of their profit to open more stores. They also give part of profit to their employees as a bonus. Conclusion Therefore, I conclude that from this course work I have evaluated many differences between public and private limited company. I have shown this by giving examples of each type of business and how they vary from each other. ?? ?? ?? ?? Pranav Jadva ...read more.

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