Why does the business affairs of a private limited company are not as private as those of a sole trader?

Answer 1

The business affairs of a private limited company are less private than those of a sole trader primarily due to regulatory requirements. Private limited companies must file financial statements and other information with government authorities, making them publicly accessible. In contrast, sole traders have fewer obligations to disclose financial information, allowing them more privacy in their business dealings. Additionally, the structure of a private limited company often involves multiple stakeholders, increasing the need for transparency.