Allama Iqbal Open University

Assignment # 1

Student ID # 0000239479

Course: Electronic Media Part-II (5628)

Semester: Spring (2022)

Level: M.Sc Mass Communication

 Assignment#1
Question#1: Compare the salient features of Private Company wit PTV?

Answer: Private (pvt. ltd.) and public firms are the two most well-known forms of businesses
(ltd.). Both private and public restricted organisations have advantages and downsides.

A business visionary needs to pick the sort in view of his subsidizing plans. We should
investigate the critical variables of both Private and Public ltd organizations.

A commercial asset that is owned by confidential proprietors is a confidential restricted

organisation. This sort of provision restricts the owner's liability to their ownership position
and prevents shareholders from openly exchanging their shares.

Advantages of a Private Limited Company

Benefits of a Private Limited Company

Individuals: In accordance with the provisions of the Companies Act 2013, a secret restricted
organisation may be founded by no more than two (and no more than 200) individuals.

Restricted risk: Every investor's or component's responsibility is limited. This actually

means that in the event that the company suffers a setback, In order to fulfil the debt or
obligation, the firm investors are required to sell their company shares. Personal property or
resources of investors or people are not jeopardised.

Number of chiefs: A secret restricted organisation requires no more than two chiefs. In the
previous fiscal year, at least one head on the governing body was most likely in India for a
total of at least 182 days.

Disadvantages of a Private Limited Company

Only if different investors agree on comparable terms can the offers in a secret restricted
organisation be sold or transferred.

A public organisation is one that has been granted authorization to offer its protections to the
general public through an initial public offering (IPO) and trades its shares on at least one
stock market. A public institution cannot commence activities unless it has received a
membership testimony. In order to be eligible to run as a public organisation, it must get
another document called as an exchanging declaration.
Benefits of a Public Limited Company

Individuals: An organisation must have at least 7 members in order to be considered public

(most extreme limitless).

Top managerial staff: A governing body controls a public entity. It should have a minimum
of 3 and a maximum of 15 top-level managers. In yearly comprehensive meetings, the
organization's investors select them from among the investors. The chosen chiefs act as the
investors' delegates while interacting with the organisation and making decisions.

Straightforwardness: In order to guarantee that the owners (investors) and potential

financial supporters are informed of the organization's genuine financial status, private
limited corporations are fully managed and are required by law to yearly reveal their
comprehensive financial reports. This assists in figuring out the components' market worth.

Capital: By presenting offers to the public in exchange for money, a public organisation can
raise money. Bonds and debentures are obligations provided to an organisation without
collateral and are reliant on the institution's financial performance and integrity. Public
organisations can raise money this way.

Adaptable offers: Parts of a public restricted organisation are available for purchase and sale.
They circulate openly among people and people doing financial transactions.

Burdens of opening up to the world:

Outline: Given that the general public is invited to purchase shares of the organisation, a
giving plan is required for public organisations.

Costly: Going public is a costly and tedious cycle. A public organization should take care of
its undertakings and plan reports and divulgences that coordinate with SEBI guidelines
concerning starting public contributions ( IPO ).

Value Dilution: Any organization opening up to the world is offering a piece of the
organization's proprietorship to outsiders. Each piece of proprietorship that the proprietor
sells emerges from their ongoing value position. It isn't generally imaginable to collect how
much cash that you might have to work a public organization from shares, so organization
proprietors ought to hold no less than 51 % of the possession in their control.

Loss of Management Control: Once a privately owned business opens up to the world,
dealing with the business turns out to be more convoluted. The proprietor of the organization
can never again settle on choices freely. Indeed, even as a greater part investor, they are
responsible to minority investors about how the organization is made due.

Expanded Regulatory Oversight: When a privately owned business becomes public, it is

subject to the regulation of the SEBI, other regulatory bodies that look after publicly traded
businesses, and the stock exchange that has consented to list the company's shares. The
increase in administrative monitoring has a big influence on the company's board.

Improved Reporting Requirements: A privately owned business can keep its inside
business data hidden. A public organization, be that as it may, should make broad quarterly
and yearly reports about business tasks, monetary position, pay of chiefs and officials and
other inner issues.