Analyse three benefi ts of Boojum Limited operating as a private limited company. (10)

First state the defintion of a private limited company. This is guaranteed marks. Def: A type of company that offers limited liability, or legal protection for its shareholders but that places certain restrictions on its ownership. Next Step give 3 advantages. (In the case of a question by which it asks you to EVALUATE you state 3 advantages/disadvantages, a mix in any order). Economies of scale (financial) Publish limited information compared to public limited company Shareholders enjoy limited liability to the extent of their investment in the company Control remains within the key shareholders, generally not accessible to investors on the stock market  Reduced risk of a formal takeover by predator investors, e.g. competitors Secures the future of the business and staff since additional funds may be available to the company, compared to a sole trader business (i.e. from banks/shareholders) Decision making shared across directors and shareholders Continuity of existence. Each advantage should take a paragraph so there should be 3 paragraphs for the advantages. Structure: The structure of each paragraph should be in the following format- State the advantage, this means that.....,therefore,........ in order to achieve this....., however...... The above is where marks are picked up in the evaluation and is what the examiner is looking for. Finally you must finish the answer with a conclusion stating briefly a final advantage and a disadvantage that the business must consider.