Introduction to Finance (1st year university work)

A Limited Company is an artificial legal psyche? P, Atrill, & adenine; E,Mclaney, Accounting and Finance for Non- specialists, Third Edition, p85. (VERY GOOD book FOR THIS issuance!!!)In other words a corporation has as numerous rights and responsibilities that a genuine person would have, apart from 1 expulsion this being those created by the Registrar Of Companies. There atomic number 18 ii types of society 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? F, Wood, Business Accounting, fifth Edition, P355. It mustiness have a stripped of two members, and at that place 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 ofsh beholders could own it, where th e 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 lots 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 inevitable to have their books and annual finalaccounts audited by an independent qualified accountant. The annualreport contains a profit and red ink account, a balance sheet, and muchother information. The auditor?s job is to make certain ? The balancesheet shall piss a r! ightful(a) 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 amply essay, order it on our website: OrderCustomPaper.com

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