‘Place’ with clientsBenefits/ Advantages in being Private Company (with analysis) –
1 It can raise fund through public.
2 Shares of this type of Company don have liquidity and they can be traded trough stock exchange and purchase & sell of these type of shares is very easy that provides liquidity to the investors.
3 Heavy fund can be raised through the public at large.
4 Decision of the company will not be bias because the number of Directors and members of the company be more as compared to the private limited Company and that’s why the decision of the company will be more thoughtful and wise and chances of biasness are very less.
5 There is more transparency that’s why chances of fraud are very less.
6 Being a public entity it has various other advantages such as Goodwill, market shares, easy loan availability etc.
7 Being a public company has its advantages and disadvantages. On the one hand, investors who hold stock get liquidity. However, there are also tremendous regulatory, administrative, financial reporting and corporate governance bylaws to comply with. These activities can shift management’s focus away from operating and growing a company and toward compliance with and adherence to government regulations.