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 take hold-and-take FOR THIS issuance!!!)In other words a corporation has as legion(predicate) rights and responsibilities that a genuine person would have, apart from angiotensin converting enzyme expulsion this being those created by the Registrar Of Companies. There atomic number 18 ii types of phoner 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 stripped-down of two members, and in that location 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) whitethorn beformed by two or more people , a family or a small convocation ofshareholders 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 overmuch 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 needful to have their books and annual finalaccounts audited by an independent qualified accountant. The annualreport contains a profit and acquittance account, a balance sheet, and muchother information. The auditor?s job is to ma ke certain ? The balancesheet shall give a ! lawful 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 full(a) essay, order it on our website: OrderEssay.net

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