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NotesBusiness ManagementTopic 1.2Private and public limited companies
Back to Business Management Topics
1.2.31 min read

Private and public limited companies

IB Business Management • Unit 1

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Contents

  • Private limited companies (Ltd)
  • Public limited companies (PLC)

🔒 Private Limited Companies (Ltd)

Big Idea: A private limited company sells shares privately to selected people. Shares cannot be bought on a public stock exchange.

Key features

  • Owned by shareholders with limited liability
  • Shares sold privately to family, friends or investors
  • Separate legal identity from owners
  • Shareholders’ personal assets are protected
  • Legal continuity — company continues if owners change

📈 Public Limited Companies (PLC)

Big Idea: A public limited company sells shares on a stock exchange where anyone can buy them.

Key features

  • Shares traded on a public stock exchange
  • Anyone can buy shares
  • Limited liability for shareholders
  • Separate legal identity
  • Must publish financial accounts
  • Risk of hostile takeover

Related Business Management Topics

Continue learning with these related topics from the same unit:

1.1.1Nature of businesses
1.1.2Business functions
1.1.3Primary, secondary, tertiary, and quaternary sectors
1.1.4Process of starting a business
View all Business Management topics

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Command terms, paper structure, and mark-scheme tips for Business Management

IB Exam Questions on Private and public limited companies

Practice with IB-style questions filtered to Topic 1.2.3. Get instant AI feedback on every answer.

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How Private and public limited companies Appears in IB Exams

Examiners use specific command terms when asking about this topic. Here's what to expect:

Define

Give the precise meaning of key terms related to Private and public limited companies.

AO1
Describe

Give a detailed account of processes or features in Private and public limited companies.

AO2
Explain

Give reasons WHY — cause and effect within Private and public limited companies.

AO3
Evaluate

Weigh strengths AND limitations of approaches in Private and public limited companies.

AO3
Discuss

Present arguments FOR and AGAINST with a balanced conclusion.

AO3

See the full IB Command Terms guide →

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1.2.2Partnerships
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