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Facebook
Facebook started off as a Private Limited Company (LTD). This means that the public are not able to buy shares into a company. In early 2012 Facebook decided to turn itself in to a Public Limited Company (PLC), a PLC is when the public is able to buy shares into a business.

Facebook is a social media website and it was launched in February 2004. It was founded by college students from Harvard University; the founder was Mark Zuckerberg and some of his roommates. A benefit of being LTD is that they are not able to lose control of their company. However this means that they have to rely on their own money to invest into the business or they will have to get capital investment. A disadvantage of a LTD is that the shares which are sold to friends can’t be sold or transacted to another person. After being a LTD for almost a decade Facebook decided to change to a PLC. A benefit of this is that the business can be funded by the public, also this means that other people own the business. However a disadvantage of this is that it means that Mark Zuckerberg could lose the whole business if someone buys more than 50% of the shares, this means they will have total control.

Facebook started off as being a Private company as because it meant that they couldn’t lose control of their business. Also they used this to get through the ‘survival’ stage of a business; this was when they were progressing from Facemash to Thefacebook.com to then what we know it as Facebook. AS it was an LTD there was not funding from people therefore, Mark decided that he would use advertisements for some money, then as the website progressed they started to sell peoples account details to people. Advantages of being an LTD is that there is Limited Liability this means that if the company experience financial distress because of normal business activity, the personal assets of shareholders

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