Scott is looking to start a new business selling organic food to try and target the current healthy food craze in Australia. He wants to call the business Organic. But he does not know what type of business structure to set up for Organic. Johnny is Scott's accountant and initially suggested to Scott that he sets up a sole trading or a proprietary company.

Scott decides to set up a company. He is now confused whether he should set up a proprietary or a public company. You are now tasked to explain the difference to Scott.

Question; What is the difference between a proprietary company and a public company? (5 marks)