Differentiate between a Private Limited | Class 11 Business Studies Chapter Forms of Business Organisation, Forms of Business Organisation NCERT Solutions

Question:

Differentiate between a Private Limited Company and a Public Limited Company.

Answer:

  • Private Limited Company:
    • Shareholders are limited to a specific number, often family and close associates.
    • Shares are not traded publicly, ensuring privacy in ownership.
    • Suitable for small and medium-sized enterprises.
  • Public Limited Company:
    • Ownership is open to the public through the sale of shares on stock exchanges.
    • Requires greater transparency and compliance with regulations.
    • Ideal for businesses needing significant capital investment.


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  • Read the question carefully and focus on the core concept being asked.
  • Reference examples and data from the chapter when answering questions about Forms of Business Organisation.
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Welcome to the NCERT Solutions for Class 11 Business Studies - Chapter . This page offers a step-by-step solution to the specific question from Extra Questions, Question 6: Differentiate between a Private Limited Company and a Public Limited Company.....