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Civic Case Study

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Introduction

Private Limited Company (Ltd) A Ltd. Company is owned by a group of shareholders who are usually family and friends as within this type of company the financial status of the company is private and only the people within the company can know its financial position, unlike a PLC as any member of the public can buy shares and view the financial position of the company. The running of the company is not always by the shareholders as often there can be two many, therefore these companies would have a ...read more.

Middle

company would have to register with the registrar of companies and then a memorandum of association and articles of association need to be drawn up and finally a certificate of incorporation needs to be obtained. This type of company has three mains objectives, which are: growth, sustain a competitive share of the market and finally to gain as much profit as possible. The main advantages of becoming a Ltd. Company are: - This type of company has Limited Liability - Capital can easily be raised by the company selling more shares. ...read more.

Conclusion

- Responsibilities are shared between the shareholders so the business will have more expertise in different areas. The main disadvantages of becoming a Ltd. Company are: - Profit has to be shared between shareholders so the owners will receive part of the profit. - Decision making have to be shared between board members or shareholders so disagreement is more likely to occur. - Financial data is no longer private if the company have to sell more shares to non-friends and family. ?? ?? ?? ?? Jonathan Davis and Andrew Wilkinson ...read more.

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