Explain The Difference Between A Private Limited Company And A Public Limited Company?

A private company runs the business for it's own profit. Whereas, a public company does not much care about profit as it is providing the goods or service for the public. If private companies does not make money then they will have to sell their possessive things to pay off the debts and whereas the public companies will not have to worry whether making profit or not because they are public companies so they are providing a service to the public. Private companies tends to be big. However, they are not so the are liable for their debts.

Even thought the information that Samarwfn produced is correct, it does not answer the specific question on hand and this may prove misleading. Samarwfn has made the mistake of commenting on the private and publics sectors rather than private and public limited companies. Both types of limited companies are in the private sector. Private limited companies can only sell there shares in private (hence the name) which is why they are usually owned within a family. Public limited companies, on the other hand, can advertise their shares freely so anyone can purchase them. However, they also have to publish documents regarding information such as their turnover.

The previous' guest answer was very right

Incorporated Business


PRIVATE LIMITED COMPANy (LTD):
Differences:
• Private Firm
• Grown in the last 25 years
• objectives are mainly centred on  profit and growth
• Shares cannot be offered  to the general public, so restricting availability of finance, especially if the business wants to expand.
• Minimum of 7 shareholders – no maximum.
• Cannot raise money by selling shares on the stock market.


Similarities:
→   Limited Liability
→   Separate legal entity
→   Corporation tax is paid on profits
→   Finance raised through sale of shares
→   Financial information available to share holders, public and especially                         Competitors.
→   Insolvency when unable to pay debts



PUBLIC LIMITED COMPANY (PLC):        →        (Health, Education, Police, etc)
Differences:
• Owned by the government.
• To trade they must have at least £50,000 worth of shares issued and at least 25% of them have to be paid up, in order for them to carry on business and borrow money from banks etc.
• Main objective is to provide a good service.
• Money is provided by the government through taxes that we pay.
• Limited to fifty members but no less that two.
• Can raise money by selling shares on the stock market.


I am studying this in my business studies class atm, and ive just done this as a starter for my homework (Y) hope its helps (: