Solomon vs Solomon

Differentiate Public Co. and pvt Co. 1. Short notes on
a) Salomon vs Salomon
b) Limited liability
3. Differentiate
a) Proprietorship
b) Partnership
c) Joint Stock Co.s

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Private companies are auctioned off at the beginning of the game and are owned outright by the winner of these auctions. Private companies provide income for the owner. This will be individual players at the start of the game, but might be public corporations later if they have acquired private companies through the course of the game by purchasing them from individual owners. Private companies do not run trains, and do not have routes, but often have special properties like access to specific stocks in public corporations or privilege to lay track in specific areas of the board. Private companies can close down when certain game conditions are met.

Public corporations start when more than half the stock for the company is in the hands of players. The company is then run by the President, who is the player that has at least 20% stock in the company and more than anyone else. That player makes all decisions related to the management of the company, which includes purchasing trains, laying track networks, and paying out or re-investing dividends. Presidency of a public corporation can be transferred between players based on stock holdings. If a public corporation can't pay its obligations, the President of the company must liquidate what they can to make up the shortfall. The bankruptcy of a public corporation is one of the ways the game can end.
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Privately-held companies are - no surprise here - privately held. This means that, in most cases, the company is owned by the company's founders, management or a group of private investors. A public company, on the other hand, is a company that has sold a portion of itself to the public via an initial public offering of some of its stock, meaning shareholders have claim to part of the company's assets and profits.

One of the biggest differences between the two types of companies deals with public disclosure. If it's a public U.S. company, which means it is trading on a U.S. stock exchange, it is typically required to file quarterly earnings reports (among other things) with the Securities and Exchange Commission (SEC). This information is also made available to shareholders and the public. Private companies, however, are not required to disclose their financial information to anyone since they do not trade stock on a stock exchange.

The main advantage public companies have is their ability to tap the financial markets by selling stock (equity) or bonds (debt) to raise capital (i.e. cash) for expansion and projects. The main advantage to private companies is that management doesn't have to answer to stockholders and isn't required to file disclosure statements with the SEC. However, a private company can't dip into the public capital markets and must therefore turn to private funding, which can boost the cost of capital and may limit expansion. It has been said often that private companies seek to minimize the tax bite, while public companies seek to increase profits for shareholders.
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Limited Liability:

Limited liability is a concept whereby a person's financial liability is limited to a fixed sum, most commonly the value of a person's investment in a company or partnership with limited liability. In other words, if a company with limited liability is sued, then the plaintiffs are suing the company, not its owners or investors. A shareholder in a limited company is not personally liable for any of the debts of the company, other than for the value of his investment in that company. The same is true for the members of a limited liability partnership and the limited partners in a limited partnership.[1] By contrast, sole proprietors and partners in general partnerships are each liable for all the debts of the business (unlimited liability).

Although a shareholder's liability for the company's actions is limited, the shareholder may still be liable for its own acts. For example, the directors of small companies (who are frequently also shareholders) are often required to give personal guarantees of the company's debts to those lending to the company. They will then be liable for those debts in the event that the company cannot pay, although the other shareholders will not be so liable. This is known as co-signing.
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sole proprietorship means you are the owner, and the highest up in the company. you are ultimately responsible for each and everything that happens to your company and if someone sues it they sue you (unless its a corporation). if you were to start up a restaurant, or gas station or something you would be the sole proprietor of that business.

a partnership is when you start up or buy a company with one or more other people. if you have a general partnership you split the business evenly with your partner(s), and you both make decisions about the company together.

a joint stock company is when a company is divided up into a certain number of stocks, each stock is a unit of ownership. the stocks are bought and sold by the stockholders, or the people who own the share of stock. say there are 100 stocks, anyone can buy them, so someone could have five stocks, someone could have 20, and respectively they would own 5% or 20% of that company, and get paid the respective amount of money. stocks themselves can earn a company a lot of money, and allow it to expand greatly, but the individual who started the company might lose control over it.
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