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Anonymous asked in Education & ReferenceHomework Help · 1 decade ago

public and private companies?

i need the characteristics, definition and main features of these two types of companies....HELP ME!!!!

3 Answers

  • 1 decade ago
    Favorite Answer

    Usually, public companies are publicly traded on a stock exchange and have shareholders who profit in the company, while privately owned companies are owned by an individual or small group who are the only ones who profit from the company. Publically owned companies have stricter accounting and disclosure laws they have to follow (so that they can be open and transparent to their investors/shareholders) while privately owned companies aren't required to disclose as much.

  • 1 decade ago

    Public companies sell stock and have thousands or tens of thousands of shareholders (owners). The executives have to try and keep the majority of their shareholders happy or they lose their jobs. Because of this, they will sometimes make business decisions that work well in the short term, but are disastrous in the long run.

    Private companies are usually owned by one family, or a small group of investors. They don't have to answer to anyone, and they don't have to worry about short term profits. Because of this, they can typically make better long term decisions.

  • Sami V
    Lv 7
    1 decade ago

    If you are a student, aren't you using a textbook which should have all the required information? Anyway, briefly, public companies are state owned whereas private companies are owned by private individuals!

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