Explain features of private company?
★𝙉𝙪𝙢𝙗𝙚𝙧 𝙊𝙛 𝙈𝙚𝙢𝙗𝙚𝙧𝙨★
𝙏𝙝𝙚𝙧𝙚 𝙞𝙨 𝙖 𝙧𝙚𝙦𝙪𝙞𝙧𝙚𝙢𝙚𝙣𝙩 𝙤𝙛 𝙘𝙚𝙧𝙩𝙖𝙞𝙣 𝙣𝙪𝙢𝙗𝙚𝙧 𝙤𝙛 𝙢𝙞𝙣𝙞𝙢𝙪𝙢 𝙢𝙚𝙢𝙗𝙚𝙧𝙨 𝙛𝙤𝙧 𝙨𝙩𝙖𝙧𝙩𝙞𝙣𝙜 𝙖 𝙥𝙧𝙞𝙫𝙖𝙩𝙚 𝙘𝙤𝙢𝙥𝙖𝙣𝙮. 𝘼𝙡𝙨𝙤, 𝙩𝙝𝙚𝙧𝙚 𝙞𝙨 𝙖 𝙡𝙞𝙢𝙞𝙩 𝙩𝙤 𝙩𝙝𝙚 𝙢𝙖𝙭𝙞𝙢𝙪𝙢 𝙣𝙪𝙢𝙗𝙚𝙧 𝙤𝙛 𝙢𝙚𝙢𝙗𝙚𝙧𝙨 𝙞𝙣 𝙖 𝙥𝙧𝙞𝙫𝙖𝙩𝙚 𝙘𝙤𝙢𝙥𝙖𝙣𝙮. 𝘼 𝙥𝙧𝙞𝙫𝙖𝙩𝙚 𝙘𝙤𝙢𝙥𝙖𝙣𝙮 𝙣𝙚𝙚𝙙 𝙩𝙤 𝙝𝙖𝙫𝙚 𝙖 𝙢𝙞𝙣𝙞𝙢𝙪𝙢 𝙤𝙛 2 𝙢𝙚𝙢𝙗𝙚𝙧𝙨 𝙛𝙤𝙧 𝙨𝙩𝙖𝙧𝙩𝙞𝙣𝙜 𝙞𝙩𝙨 𝙗𝙪𝙨𝙞𝙣𝙚𝙨𝙨.
𝙃𝙤𝙬𝙚𝙫𝙚𝙧, 𝙞𝙩 𝙘𝙖𝙣𝙣𝙤𝙩 𝙝𝙖𝙫𝙚 𝙢𝙤𝙧𝙚 𝙩𝙝𝙖𝙣 200 𝙢𝙚𝙢𝙗𝙚𝙧𝙨, 𝙩𝙝𝙞𝙨 𝙞𝙨 𝙩𝙝𝙚 𝙢𝙖𝙭𝙞𝙢𝙪𝙢 𝙡𝙞𝙢𝙞𝙩.
★𝙈𝙚𝙢𝙗𝙚𝙧’𝙨 𝙇𝙞𝙖𝙗𝙞𝙡𝙞𝙩𝙮 𝙄𝙨 𝙇𝙞𝙢𝙞𝙩𝙚𝙙★
𝙈𝙚𝙢𝙗𝙚𝙧𝙨 𝙤𝙛 𝙥𝙧𝙞𝙫𝙖𝙩𝙚 𝙡𝙞𝙢𝙞𝙩𝙚𝙙 𝙘𝙤𝙢𝙥𝙖𝙣𝙞𝙚𝙨 𝙚𝙣𝙟𝙤𝙮 𝙡𝙞𝙢𝙞𝙩𝙚𝙙 𝙡𝙞𝙖𝙗𝙞𝙡𝙞𝙩𝙮 𝙞𝙣 𝙩𝙝𝙚 𝙗𝙪𝙨𝙞𝙣𝙚𝙨𝙨. 𝙏𝙝𝙚 𝙡𝙞𝙖𝙗𝙞𝙡𝙞𝙩𝙮 𝙤𝙛 𝙞𝙩𝙨 𝙘𝙤𝙢𝙥𝙖𝙣𝙞𝙚𝙨 𝙞𝙨 𝙡𝙞𝙢𝙞𝙩𝙚𝙙 𝙩𝙤 𝙩𝙝𝙚 𝙣𝙪𝙢𝙗𝙚𝙧 𝙤𝙛 𝙨𝙝𝙖𝙧𝙚𝙨 𝙝𝙚𝙡𝙙 𝙗𝙮 𝙩𝙝𝙚𝙢. 𝙈𝙚𝙢𝙗𝙚𝙧’𝙨 𝙥𝙚𝙧𝙨𝙤𝙣𝙖𝙡 𝙖𝙨𝙨𝙚𝙩𝙨 𝙤𝙧 𝙥𝙧𝙤𝙥𝙚𝙧𝙩𝙮 𝙞𝙨 𝙣𝙤𝙩 𝙡𝙞𝙖𝙗𝙡𝙚 𝙩𝙤 𝙥𝙖𝙮 𝙤𝙛𝙛 𝙩𝙝𝙚 𝙗𝙪𝙨𝙞𝙣𝙚𝙨𝙨 𝙡𝙤𝙨𝙨𝙚𝙨. 𝙄𝙣 𝙘𝙖𝙨𝙚 𝙤𝙛 𝙡𝙤𝙨𝙨𝙚𝙨 𝙤𝙣𝙡𝙮 𝙨𝙝𝙖𝙧𝙚𝙝𝙤𝙡𝙙𝙚𝙧 𝙨𝙝𝙖𝙧𝙚 𝙞𝙣 𝙘𝙤𝙢𝙥𝙖𝙣𝙮 𝙖𝙨𝙨𝙚𝙩𝙨 𝙞𝙨 𝙡𝙞𝙖𝙗𝙡𝙚 𝙛𝙤𝙧 𝙥𝙖𝙮𝙢𝙚𝙣𝙩.
★𝙈𝙞𝙣𝙞𝙢𝙪𝙢 𝙋𝙖𝙞𝙙-𝙐𝙥 𝘾𝙖𝙥𝙞𝙩𝙖𝙡★
𝙋𝙧𝙞𝙫𝙖𝙩𝙚 𝙘𝙤𝙢𝙥𝙖𝙣𝙞𝙚𝙨 𝙧𝙚𝙦𝙪𝙞𝙧𝙚 𝙘𝙚𝙧𝙩𝙖𝙞𝙣 𝙖𝙢𝙤𝙪𝙣𝙩 𝙤𝙛 𝙢𝙞𝙣𝙞𝙢𝙪𝙢 𝙘𝙖𝙥𝙞𝙩𝙖𝙡 𝙛𝙤𝙧 𝙨𝙩𝙖𝙧𝙩𝙞𝙣𝙜 𝙞𝙩𝙨 𝙗𝙪𝙨𝙞𝙣𝙚𝙨𝙨. 𝙏𝙝𝙚𝙨𝙚 𝙘𝙤𝙢𝙥𝙖𝙣𝙞𝙚𝙨 𝙖𝙧𝙚 𝙧𝙚𝙦𝙪𝙞𝙧𝙚𝙙 𝙩𝙤 𝙝𝙖𝙫𝙚 𝙖 𝙢𝙞𝙣𝙞𝙢𝙪𝙢 𝙤𝙛 𝙍𝙨. 1 𝙡𝙖𝙠𝙝 𝙖𝙨 𝙥𝙖𝙞𝙙 𝙪𝙥 𝙘𝙖𝙥𝙞𝙩𝙖𝙡. 𝙏𝙝𝙚 𝙡𝙞𝙢𝙞𝙩 𝙤𝙛 𝙥𝙖𝙞𝙙 𝙪𝙥 𝙘𝙖𝙥𝙞𝙩𝙖𝙡 𝙛𝙤𝙧 𝙩𝙝𝙚𝙨𝙚 𝙘𝙤𝙢𝙥𝙖𝙣𝙞𝙚𝙨 𝙞𝙨 𝙥𝙧𝙚𝙨𝙘𝙧𝙞𝙗𝙚𝙙 𝙛𝙧𝙤𝙢 𝙩𝙞𝙢𝙚 𝙩𝙤 𝙩𝙞𝙢𝙚.
★𝙍𝙚𝙨𝙩𝙧𝙞𝙘𝙩𝙞𝙤𝙣 𝙊𝙣 𝙎𝙝𝙖𝙧𝙚𝙨★ 𝙏𝙧𝙖𝙣𝙨𝙛𝙚𝙧𝙖𝙗𝙞𝙡𝙞𝙩𝙮
𝙈𝙚𝙢𝙗𝙚𝙧𝙨 𝙤𝙛 𝙥𝙧𝙞𝙫𝙖𝙩𝙚 𝙡𝙞𝙢𝙞𝙩𝙚𝙙 𝙘𝙤𝙢𝙥𝙖𝙣𝙞𝙚𝙨 𝙘𝙖𝙣𝙣𝙤𝙩 𝙩𝙧𝙖𝙣𝙨𝙛𝙚𝙧 𝙩𝙝𝙚𝙞𝙧 𝙨𝙝𝙖𝙧𝙚𝙨 𝙥𝙪𝙗𝙡𝙞𝙘𝙡𝙮. 𝙏𝙝𝙚𝙧𝙚 𝙞𝙨 𝙖 𝙨𝙩𝙧𝙞𝙘𝙩 𝙧𝙚𝙨𝙩𝙧𝙞𝙘𝙩𝙞𝙤𝙣 𝙤𝙣 𝙩𝙝𝙚 𝙩𝙧𝙖𝙣𝙨𝙛𝙚𝙧𝙖𝙗𝙞𝙡𝙞𝙩𝙮 𝙤𝙛 𝙨𝙝𝙖𝙧𝙚𝙨 𝙞𝙣 𝙩𝙝𝙚𝙨𝙚 𝙘𝙤𝙢𝙥𝙖𝙣𝙞𝙚𝙨. 𝙎𝙝𝙖𝙧𝙚𝙝𝙤𝙡𝙙𝙚𝙧𝙨 𝙣𝙚𝙚𝙙 𝙩𝙤 𝙙𝙞𝙨𝙘𝙪𝙨𝙨 & 𝙩𝙖𝙠𝙚 𝙘𝙤𝙣𝙨𝙚𝙣𝙩 𝙤𝙛 𝙤𝙩𝙝𝙚𝙧 𝙨𝙝𝙖𝙧𝙚𝙝𝙤𝙡𝙙𝙚𝙧𝙨 𝙛𝙤𝙧 𝙩𝙧𝙖𝙣𝙨𝙛𝙚𝙧 𝙤𝙛 𝙨𝙝𝙖𝙧𝙚𝙨.
𝙋𝙧𝙞𝙫𝙖𝙩𝙚 𝙇𝙞𝙢𝙞𝙩𝙚𝙙
𝙄𝙩 𝙞𝙨 𝙞𝙢𝙥𝙤𝙧𝙩𝙖𝙣𝙩 𝙛𝙤𝙧 𝙥𝙧𝙞𝙫𝙖𝙩𝙚 𝙘𝙤𝙢𝙥𝙖𝙣𝙞𝙚𝙨 𝙩𝙤 𝙪𝙨𝙚 𝙩𝙝𝙚 𝙬𝙤𝙧𝙙 “𝙋𝙧𝙞𝙫𝙖𝙩𝙚 𝙇𝙞𝙢𝙞𝙩𝙚𝙙 𝙤𝙧 𝙋𝙫𝙩. 𝙇𝙩𝙙.” 𝙞𝙣 𝙩𝙝𝙚𝙞𝙧 𝙣𝙖𝙢𝙚. 𝙋𝙧𝙞𝙫𝙖𝙩𝙚 𝙘𝙤𝙢𝙥𝙖𝙣𝙞𝙚𝙨 𝙖𝙧𝙚 𝙢𝙖𝙣𝙙𝙖𝙩𝙤𝙧𝙮 𝙧𝙚𝙦𝙪𝙞𝙧𝙚𝙙 𝙩𝙤 𝙪𝙨𝙚 𝙩𝙝𝙞𝙨 𝙞𝙣 𝙩𝙝𝙚𝙞𝙧 𝙣𝙖𝙢𝙚.
𝙋𝙚𝙧𝙥𝙚𝙩𝙪𝙖𝙡 𝙎𝙪𝙘𝙘𝙚𝙨𝙨𝙞𝙤𝙣
𝙏𝙝𝙚 𝙥𝙧𝙞𝙫𝙖𝙩𝙚 𝙡𝙞𝙢𝙞𝙩𝙚𝙙 𝙘𝙤𝙢𝙥𝙖𝙣𝙞𝙚𝙨 𝙠𝙚𝙚𝙥 𝙤𝙣 𝙘𝙤𝙣𝙩𝙞𝙣𝙪𝙞𝙣𝙜 𝙛𝙤𝙧𝙚𝙫𝙚𝙧. 𝙄𝙩𝙨 𝙡𝙞𝙛𝙚 𝙤𝙧 𝙘𝙤𝙣𝙩𝙞𝙣𝙪𝙞𝙩𝙮 𝙞𝙨 𝙣𝙤𝙩 𝙖𝙛𝙛𝙚𝙘𝙩𝙚𝙙 𝙗𝙮 𝙩𝙝𝙚 𝙡𝙞𝙛𝙚 𝙤𝙛 𝙞𝙩𝙨 𝙢𝙚𝙢𝙗𝙚𝙧𝙨. 𝙏𝙝𝙚𝙨𝙚 𝙘𝙤𝙢𝙥𝙖𝙣𝙞𝙚𝙨 𝙖𝙧𝙚 𝙘𝙧𝙚𝙖𝙩𝙚𝙙 𝙗𝙮 𝙡𝙖𝙬 & 𝙖𝙧𝙚 𝙖𝙡𝙨𝙤 𝙙𝙞𝙨𝙨𝙤𝙡𝙫𝙚𝙙 𝙗𝙮 𝙞𝙩. 𝘿𝙚𝙖𝙩𝙝, 𝙞𝙣𝙨𝙤𝙡𝙫𝙚𝙣𝙘𝙮 𝙤𝙧 𝙗𝙖𝙣𝙠𝙧𝙪𝙥𝙩𝙘𝙮 𝙤𝙛 𝙖𝙣𝙮 𝙤𝙛 𝙞𝙩𝙨 𝙢𝙚𝙢𝙗𝙚𝙧𝙨 𝙙𝙤𝙚𝙨 𝙣𝙤𝙩 𝙖𝙛𝙛𝙚𝙘𝙩 𝙩𝙝𝙚 𝙡𝙞𝙛𝙚 𝙤𝙛 𝙩𝙝𝙚 𝙗𝙪𝙨𝙞𝙣𝙚𝙨𝙨. 𝙏𝙝𝙚 𝙗𝙪𝙨𝙞𝙣𝙚𝙨𝙨 𝙚𝙣𝙟𝙤𝙮𝙨 𝙥𝙚𝙧𝙥𝙚𝙩𝙪𝙖𝙡 𝙨𝙪𝙘𝙘𝙚𝙨𝙨𝙞𝙤𝙣.
𝙎𝙚𝙥𝙖𝙧𝙖𝙩𝙚 𝙇𝙚𝙜𝙖𝙡 𝙀𝙣𝙩𝙞𝙩𝙮
𝙋𝙧𝙞𝙫𝙖𝙩𝙚 𝙘𝙤𝙢𝙥𝙖𝙣𝙞𝙚𝙨 𝙖𝙧𝙚 𝙘𝙧𝙚𝙖𝙩𝙚𝙙 𝙗𝙮 𝙡𝙖𝙬. 𝙏𝙝𝙚𝙨𝙚 𝙘𝙤𝙢𝙥𝙖𝙣𝙞𝙚𝙨 𝙝𝙖𝙫𝙚 𝙖 𝙨𝙚𝙥𝙖𝙧𝙖𝙩𝙚 𝙡𝙚𝙜𝙖𝙡 𝙚𝙣𝙩𝙞𝙩𝙮 𝙛𝙧𝙤𝙢 𝙞𝙩𝙨 𝙤𝙬𝙣𝙚𝙧& 𝙨𝙝𝙖𝙧𝙚𝙝𝙤𝙡𝙙𝙚𝙧𝙨. 𝙄𝙩 𝙞𝙨 𝙩𝙧𝙚𝙖𝙩𝙚𝙙 𝙖𝙨 𝙖𝙣 𝙖𝙧𝙩𝙞𝙛𝙞𝙘𝙞𝙖𝙡 𝙥𝙚𝙧𝙨𝙤𝙣 & 𝙘𝙤𝙣𝙙𝙪𝙘𝙩𝙨 𝙗𝙪𝙨𝙞𝙣𝙚𝙨𝙨 𝙞𝙣 𝙞𝙩𝙨 𝙤𝙬𝙣 𝙣𝙖𝙢𝙚. 𝙄𝙩 𝙝𝙖𝙨 𝙞𝙩𝙨 𝙤𝙬𝙣 𝙣𝙖𝙢𝙚, 𝙤𝙬𝙣 𝙨𝙚𝙖𝙡 & 𝙤𝙬𝙣𝙨 𝙖𝙡𝙡 𝙥𝙧𝙤𝙥𝙚𝙧𝙩𝙮 𝙞𝙣 𝙝𝙞𝙨 𝙤𝙬𝙣 𝙣𝙖𝙢𝙚.
Explain features of private company?
Features of Private Company
Private companies are business entities that are owned by a group of individuals or a single person. They are not publicly traded on stock exchanges, and their shares are not available for purchase by the general public. Below are some of the features of private companies:
Limited Liability
- One of the most significant advantages of a private company is limited liability. It means that the shareholders are only liable for the company's debts up to the amount of their investment in the company.
- The personal assets of the shareholders are not at risk in case of the company's insolvency.
Less Disclosure Requirements
- Private companies are not required to disclose their financial information to the public. It means that they have fewer reporting requirements than public companies.
- They do not have to file annual reports or disclose executive compensation, which makes them more secretive.
Ownership and Control
- In a private company, ownership and control rest with a small group of shareholders or a single person, which allows for more flexibility in decision-making and operations.
- The shareholders have the power to appoint directors, who are responsible for managing the company's affairs.
Less Regulatory Oversight
- Private companies are not subject to the same level of regulatory oversight as public companies.
- They do not have to comply with securities laws, which makes their operations less burdensome.
Restricted Transferability of Shares
- The shares of a private company cannot be freely traded or sold on a stock exchange, and they are not available to the general public.
- The transfer of shares is restricted to the company's existing shareholders or with the company's approval.
Lower Cost of Compliance
- Private companies have lower compliance costs compared to public companies since they are not required to comply with securities laws and regulations.
- They also have fewer reporting requirements, which reduces the administrative burden and costs.
More Control over Capital
- Private companies have more control over their capital since they are not subject to the demands of shareholders or the stock market.
- They can reinvest earnings back into the business without worrying about satisfying investors or Wall Street analysts.
To make sure you are not studying endlessly, EduRev has designed Class 11 study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Class 11.