3. Becoming a Limited Company Scenario: Private vs Public - Rheo thanks you for all your help above and eventually decided to go into partnership with Lucy, naming their business Rhucy Marketing'. It is now five years later and
what a great five years it's been for them both. The digital marketing business has been very successful, they have
a number of loyal customers, three employees and a city centre office. Furthermore, they have just updated their
business plan and acquired some funding to support the business' growth over the next year.
However, they are having a big disagreement about becoming a limited company. They are considering changing
the legal status of the business to operate as a limited company incorporation). However, Rheo is certain that if
they do, the general public can buy shares in the business and is very worried about this. Lucy is confident that
this is not the case as long as they set up as a private limited company and not a public limited company.
Task 3a Help Rheo and Lucy settle the debate by explaining the key differences between a Private Limited Company
(Ltd.) and a Public Limited Company (PLC) including the advantages and drawbacks of each.