Introduction to Finance (1st year university work)

A Limited Company is an artificial legal somebody? P, Atrill, & adenine; E,Mclaney, Accounting and Finance for Non- specialists, Third Edition, p85. (VERY GOOD volume FOR THIS issuance!!!)In other words a corporation has as numerous rights and responsibilities that a genuine person would have, apart from superstar expulsion this being those created by the Registrar Of Companies. There be ii types of corporation at that place is the private company and the public company. A Public Company (PLC) is defined as ? one whosememorandum submits that the company is a public company, and has registered as such(prenominal)? F, Wood, Business Accounting, fifth Edition, P355. It mustiness have a marginal of two members, and in that respect is no touch on tohow many can join, and the company must have an authorised capital,which is usually at least £50,000. A Private Company (Ltd) may beformed by two or more people, a family or a small convocation ofshargonholders could own it , where the shares of ownership are not soldto the public. Shares basically limit the company, and this is wherethe liability of the members for the debts of the company is limitedto how oftentimes they invest into it. The creditors can accusal no furthercontribution from the shareholders to meet their claims against thebusiness, and that there liability is limited by guarantee.

Limited Companies are undeniable to have their books and annual finalaccounts audited by an independent qualified accountant. The annualreport contains a profit and passing account, a balance sheet, and muchother information. The auditor?s job is to make certain ? The balancesheet ! shall suffer a genuine and fair facet of the state of affairs of thecompany as at the end of its financial twelvemonth; and the profit and lossaccount shall a give true and fair view of the profit or loss of thecompany for the financial year? (Companies Act... If you take to get a spacious essay, order it on our website: OrderCustomPaper.com

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