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THE BUSINESS ORGANISATION

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA BT – FIA FBT › THE BUSINESS ORGANISATION

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by Ken Garrett.
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  • Author
    Posts
  • January 19, 2022 at 6:45 am #646983
    bad2341
    Participant
    • Topics: 7
    • Replies: 1
    • ☆

    Very warm greetings to you sir. I had asked you several questions and you have cleared my doubts. I appreciate your effort in taking the time and answering the question. thank you for your effort, sir. I have a question which i don’t understand please help me clear the doubt.
    The question is: Both public and private limited companies are allowed to sell shares to the public Are this statement true or false?
    MY argument on this question was as follows. If we define public limited companies they are generally owned by a wider proportion of the investing public while private companies are owned by only small number of shareholders.so if the private limited companies sell their shares it will be more of co-operative rather than a private limited company. Kindly please clear my doubt on this question with an example?

    January 19, 2022 at 9:39 am #647010
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10197
    • ☆☆☆☆☆

    Thank you for your kind words.

    Private companies are not allowed to sell shares to the public. Their shares are usually held by a small number of company founders.

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