business






 

Question by  katin (24)

What makes a company "private" and "limited"?

What are the requirements for those labels?

 
+7

Answer by  Key99 (33)

Depends on the country and state, but "limited" usually refers to "limited liability" where the owners and investors cannot be held personally liable for losses the company incurs. Private limited companies are owned by a selection of share holders, but the shares are not publicly traded. PLCs (public limited companies) have shares available on the stock market.

 
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