• 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)

    In some counties in Britain, they offer "packages". In these packages they offer financial support and in some cases help reduce property rent for small enterprisers. With some packages they offer help with locating to worksites, office complexes, retail centres etc and with the help of these packages they hope to expand the business without the costs increasing.

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

    Consumables are the product consumed, like pencils and food items. They are not consuming for a long time where consumer durables lasts for a long time like electrical items like television and radio. Tertiary sector The tertiary sector provides services to the public so it can also be called service sector.

  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. Vodafone Plc

    This would affect the communication as letters is a good method of sending messages it is more reliable and can reach in a day or two. This is a good method as the main manager could be aware of what is happening and he could pass on the message ands

  1. 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.

  2. Introduction to J Sainsbury plc

    It also achieves its objective by training colleagues and maintaining customer satisfaction. Sainsbury's also provide customers with a nectar reward card, which enables customers to gain a certain amount of points and this leads to them benefiting from many discounts on the products that they buy.

  1. Investigation into Cadbury's Plc.

    Private companies may find it hard to raise more capital by selling shares than unlimited liability businesses. The shareholders can also have the protection of limited liability. The main disadvantages compared with unlimited liability businesses are that they have to share out profits among shareholders, and they cannot make decisions quickly plus they cost more to set up.

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

    There are six work levels within Tesco?s organisation structure. This gives a clear structure for managing and controlling the organisation. Each level requires particular skills and behaviours from staff. Work level 1 is about frontline jobs working directly with customers. Various in-store tasks, such as filling shelves with stock.

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