Being Privately-Held

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Der’Reonna T. Conyers Mr. Davis Business foundation September.28, 2015 The advantages and Disadvantages of being privately held In this report I will explain some advantages and disadvantages of being privately held. Advantage is when a condition or circumstance that puts one in a favorable superior position. Disadvantage is an unfavorable circumstance or condition that reduces the chances of success or effectiveness. A privately held business has lots of advantages, but there are also some Disadvantages, a few advantages are controlling, confidentiality, and financial results, some disadvantages are transfers of shares, risk of loss, and access to credit. Control is one of the biggest advantages a privately owned company can have .The advantages of being a privately owned company “As an owner of a privately held company, you have complete authority over operational decisions and don’t have to worry about shareholder expectations and interference”. (Doward) However “Shareholders in public companies are often focused on current earnings” (Doward) although “they can exert tremendous pressure to increase earnings in the short term in order to increase the value of their stock”. (Doward) As I stated before control is one of the biggest advantages that tags along with being a privately held company, you control everything and there’s no stress with having to deal…show more content…
If a company is public then "Information such as executive compensation, legal settlements and other sensitive information cannot be kept confidential". (Doward) This is why confidentiality is one of the advantages of being a privately held company. "Compliance with these SEC disclosure regulations can expose information that you would prefer to keep confidential" in a privately held company you can keep all your information that you wish to keep private,

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