Topic 2 : Discussion Activity 1 by Shamini E.Salvanathan https://padlet.com/shaminiesalvanathan/dwls34sq51fnz0z9 Why would a business choose to make the following business structure changes? en-us 2025-08-14 02:07:02 UTC 2025-08-14 02:42:31 UTC hello@padlet.com https://padlet.net/icons/png/1f44d.png https://padlet.com/shaminiesalvanathan/dwls34sq51fnz0z9/wish/3542940147 Wider range of fundraising


]]> 2025-08-14 02:32:09 UTC https://padlet.com/shaminiesalvanathan/dwls34sq51fnz0z9/wish/3542940147 https://padlet.com/shaminiesalvanathan/dwls34sq51fnz0z9/wish/3542941105 There is a limited liability and it is easier to access capital

]]> 2025-08-14 02:32:59 UTC https://padlet.com/shaminiesalvanathan/dwls34sq51fnz0z9/wish/3542941105 Clearer ownership strucuture https://padlet.com/shaminiesalvanathan/dwls34sq51fnz0z9/wish/3542941627 2025-08-14 02:33:14 UTC https://padlet.com/shaminiesalvanathan/dwls34sq51fnz0z9/wish/3542941627 https://padlet.com/shaminiesalvanathan/dwls34sq51fnz0z9/wish/3542942139

  • Avoid expensive reporting, auditing, and regulatory requirements

  • Faster to decide, less pressure from public shareholders

  • less need to show sensitive financial information


    • ]]>     2025-08-14 02:33:39 UTC https://padlet.com/shaminiesalvanathan/dwls34sq51fnz0z9/wish/3542942139     https://padlet.com/shaminiesalvanathan/dwls34sq51fnz0z9/wish/3542942182 To get limited liability, operate as a separate legal entity, raise capital more easily, continue even if owners change, and improve its image and credibility.


    ]]>     2025-08-14 02:33:42 UTC https://padlet.com/shaminiesalvanathan/dwls34sq51fnz0z9/wish/3542942182     buying out all public shareholders https://padlet.com/shaminiesalvanathan/dwls34sq51fnz0z9/wish/3542942349 2025-08-14 02:33:51 UTC https://padlet.com/shaminiesalvanathan/dwls34sq51fnz0z9/wish/3542942349 https://padlet.com/shaminiesalvanathan/dwls34sq51fnz0z9/wish/3542942471 Because it has more control for owners

    ]]>     2025-08-14 02:34:00 UTC https://padlet.com/shaminiesalvanathan/dwls34sq51fnz0z9/wish/3542942471     https://padlet.com/shaminiesalvanathan/dwls34sq51fnz0z9/wish/3542942618 Perpetual

    The company continues to exist even if owners or directors change, retire, or pass away.

    ]]>     2025-08-14 02:34:09 UTC https://padlet.com/shaminiesalvanathan/dwls34sq51fnz0z9/wish/3542942618     Long-term focus https://padlet.com/shaminiesalvanathan/dwls34sq51fnz0z9/wish/3542942832 2025-08-14 02:34:20 UTC https://padlet.com/shaminiesalvanathan/dwls34sq51fnz0z9/wish/3542942832 less regulation, more flexibility but expensive, loss of access to capital markets https://padlet.com/shaminiesalvanathan/dwls34sq51fnz0z9/wish/3542943287 2025-08-14 02:34:46 UTC https://padlet.com/shaminiesalvanathan/dwls34sq51fnz0z9/wish/3542943287 https://padlet.com/shaminiesalvanathan/dwls34sq51fnz0z9/wish/3542943401 To reduce high compliance and listing costs, gain more control over decision-making, and maintain greater privacy over its financial and strategic information.

    ]]>     2025-08-14 02:34:53 UTC https://padlet.com/shaminiesalvanathan/dwls34sq51fnz0z9/wish/3542943401     con https://padlet.com/shaminiesalvanathan/dwls34sq51fnz0z9/wish/3542943694 proprietorship or private company have unlimited liablities but private company has limited liabilies which can protect their assets

    ]]>     2025-08-14 02:35:13 UTC https://padlet.com/shaminiesalvanathan/dwls34sq51fnz0z9/wish/3542943694     Lower Costs https://padlet.com/shaminiesalvanathan/dwls34sq51fnz0z9/wish/3542943885 Maintaining a public listing involves expenses like listing fees, investor relations teams, external audits, and legal compliance.

    Private status reduces these ongoing costs.

    ]]>     2025-08-14 02:35:26 UTC https://padlet.com/shaminiesalvanathan/dwls34sq51fnz0z9/wish/3542943885     https://padlet.com/shaminiesalvanathan/dwls34sq51fnz0z9/wish/3542944143 fewer reporting obligations so less burden

    ]]>     2025-08-14 02:35:44 UTC https://padlet.com/shaminiesalvanathan/dwls34sq51fnz0z9/wish/3542944143     https://padlet.com/shaminiesalvanathan/dwls34sq51fnz0z9/wish/3542944176 -Make it easy to control the company

    -Dont have the pressure to share dividends to all public shareholders


    ]]>     2025-08-14 02:35:45 UTC https://padlet.com/shaminiesalvanathan/dwls34sq51fnz0z9/wish/3542944176     https://padlet.com/shaminiesalvanathan/dwls34sq51fnz0z9/wish/3542944363

  • limited personal liability

  • raise more funds by issuing shares

  • The company continues working even if an owner changes or dies

  • Being a registered company can attract more investors


    • ]]>     2025-08-14 02:35:59 UTC https://padlet.com/shaminiesalvanathan/dwls34sq51fnz0z9/wish/3542944363     con https://padlet.com/shaminiesalvanathan/dwls34sq51fnz0z9/wish/3542944723 private company has less regulation compare with public company

    ]]>     2025-08-14 02:36:22 UTC https://padlet.com/shaminiesalvanathan/dwls34sq51fnz0z9/wish/3542944723     More regulation, higher set up costs and ownership complexity https://padlet.com/shaminiesalvanathan/dwls34sq51fnz0z9/wish/3542945575 2025-08-14 02:37:20 UTC https://padlet.com/shaminiesalvanathan/dwls34sq51fnz0z9/wish/3542945575 •Limited liability • Easier to raise money • Clear ownership https://padlet.com/shaminiesalvanathan/dwls34sq51fnz0z9/wish/3542950735


    ]]>     2025-08-14 02:42:30 UTC https://padlet.com/shaminiesalvanathan/dwls34sq51fnz0z9/wish/3542950735     Less rules and costs • More privacy • Faster decisions • More control https://padlet.com/shaminiesalvanathan/dwls34sq51fnz0z9/wish/3542951548 2025-08-14 02:43:22 UTC https://padlet.com/shaminiesalvanathan/dwls34sq51fnz0z9/wish/3542951548