• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Private Limited company

Extracts from this document...

Introduction

Private Limited Companies A private limited company is also known as a LTD. It is a registered company which has limited liability. The extent of a private limited company differs from medium to large. LTD's are incorporated, which means they have a separate legal identity to their shareholders. This equates that if the company by any change goes bankrupt; the shareholders will not be affected and will remain in their positions. The shareholders can only lose the amount of capital they put into the business to start with, no more and no less- you cannot lose more than you invest. Private limited companies are entitled to sell their shares to people of the owners' choice, like family members and friends. The main aims of a private limited company include maximisation of profit in order to maximise returns (dividends) ...read more.

Middle

- Firstly the company needs to register at Companies House, which is situated in Cardiff. - Secondly the company must derive up a 'Memorandum of Association', this sets out what deeds the company can carry out. - Thirdly the company will need to draw up an 'Articles of Association', this is the rule book for the internal running of the company, and it sets out what executives can and cannot do. - Lastly the company should acquire from Companies house, a 'Certificate of incorporation'; this is the 'birth certificate' of a LTD. Private limited companies have limited liability because the responsibilities for the debts of the business are inadequate to the sum of money that was first devoted into the business by the shareholders. ...read more.

Conclusion

There is a divorce of ownership from control - the owners may have different views and aims from the directors they appoint; the directors may have different view points from the managers they appoint; and finally the managers may have different viewpoints from the workers they appoint. This can lead to no-one achieving their aims. Large amounts of capital can be raised in fairly short time periods unlike a partnership as there are numerous shareholders. LTD's are Small and less bureaucratic than PLC's, e.g. decisions can be taken more quickly. Unlike sole traders and partnerships a LTD is legally obliged to publish their annual accounts every year. Ownership and control are closely connected, e.g. Board of Directors is usually the main shareholders. Companies are liable to conquests by other companies or the original owners could lose control of the company. Advantages and Disadvantages of a LTD UNIT ONE AO2 Unit Title- Investigating Business Sahar Shafi 10JCU ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Structures, Objectives & External Influences section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Structures, Objectives & External Influences essays

  1. Marked by a teacher

    ASDA's Ownership

    4 star(s)

    Financial Help from the Government In some regions in the UK they have Assisted Areas. Assisted Areas are areas that receive financial help from the Regional Selective Assistance (RSA). They provide employment opportunities, increase competitiveness and prosperity. In 1998 all European guidelines changed and new Assisted Areas were due to operate from the 1st January 2001.

  2. For my portfolio, I was asked to do an assignment on two businesses. I ...

    In a limited company corporation tax is paid on the net profit. Task 2 Industrial sectors. A) The three main sectors in the United Kingdom are 1) Primary sector 2) Secondary sector 3) Tertiary sector Primary sectors: The primary sector deals with producing or extracting raw materials.

  1. Ownership of J.Sainsburys J.Sainsburys is a public limited company.

    this means if 1 of the owners were to leave then the other owners must sign another deed of partnership; this is a contract outlining the deeds set out for each individual this maybe how much each individual has to put in or maybe how much percentage they will own and other important details.

  2. Barclays Investigating a Business

    business running; selling products to customers, local area ensuring the business has a good opinion, suppliers supplying high quality products creating a well known brand. Meeting Stakeholders Needs- In order to keep their stakeholders happy they need to meet their needs.

  1. Vodafone Plc

    and the community (materials and environmental issues). Many business needs to communicate outside of the business because the need to keep a good image of their firm this is know as a public relations function. The company also needs to groups with information about the company e.g.

  2. Introduction to J Sainsbury plc

    involvement in education and is strongly committed to partnerships with education bodies". (Source: www.j-sainsbury.co.uk) This statement clearly suggests that Sainsbury's Taste of Success campaign is responsible for the community. The customer service department liase with schools and offers teacher training to help achieve the objective of being responsible to the community.

  1. Classify the business according to its ownership, and explain the benefits and constraints of ...

    The 'Article of Association' also contains: * Procedures for calling shareholders meetings (e.g. annual general meeting (AGM) (EGM) extradinary general meeting) and * Details of how the accounts will be kept and recorded. E2: describe and explain the objectives of the business Corporate objectives are objectives that the business tries to achieve.

  2. Investigating Business. Tesco PLC. I will be describing the aims and objectives of ...

    Tesco?s set up teambuilding days for every employee across all of their departments so that they can gain/ improve Team-working skills. Each of Tesco?s departments work on a different aspects of the business, such as for the Human Resources department, each employee within that department deal with recruitment of the

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work