Private Limited Companies
- Created by: henriettabobmanuel
- Created on: 08-06-22 09:26
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- Private Limited Companies (ltd)
- Businesses that sell shares privately to invited members
- These businesses get their name because they have limited liability
- This means that owners’ personal possessions are not at risk. If thebusiness gets into debt with creditors, the owners only lose theirinvestment in the company.
- Disadvantages
- Profits have to be shared with many shareholders by issuing dividends
- A complicated legal process is required to set up the company
- A limited source of capital is available as shares are not sold publicly
- Financial statements have to be shared with Companies house, meaning that profits are not kept private
- Ownership
- 1-50 shareholders
- Examples
- Plumber
- Hairdresser
- Accountant
- Main documents
- Memorandum of Association
- Articles of Association
- Main Aims
- maximise profits
- to grow
- increase market share.
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