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COMPANY, Defintions, Paula Andrade 1B, Bibliography …

- - - - The business can be sued on its own and not involve its shareholders. The company does not belong to any person since one person can own only a part of it.
    - - Public limited companies are strictly regulated and are required by law to publish their complete financial statements annually. This ensures that they reveal their true financial position to their owners and potential investors so that they can determine the true worth of its shares.
    - - Public limited companies are headed by a board of directors. The composition of the board of directors is set out in the company’s articles of association
    - - Public limited companies enjoy an increased ability to raise capital since they can issue shares to the public through the stock market.
  - - - The term “public” here is to be taken literally. Once a firm goes public, the firm is open to public inspection. The financial books and records of the firm are open to anyone, allowing the competition to see precisely how much profit or loss the firm is experiencing.
    - - Since the company is now “public,” anyone can buy up shares, and there is no limit as to how many shares one can buy.
    - - A Public Limited Company is normally a complex thing to start. The firm banker then offers the initial shares to the public (and keeps a substantial commission).
    - - If the company is public, it must have a board of directors representing the main and most powerful stockholders. This means, in turn, that major decisions must go through the board, with debates and voting.
- - - - These companies pay corporation tax on their taxable profits and tend to be exempt from higher personal income tax rates.
    - - With adequate funding, your company can produce goods at a lower cost, thus increasing profits and customer satisfaction. Furthermore, the future of the business becomes more secure.
    - - Private limited companies, are treated as a single entity, making the company responsible for all debts.
    - - Private limited companies enjoy permanent succession because the company is its legal entity.
  - - - Shareholders in a Private Limited Company are not able to sell or transfer their shares to the general public.
    - - A Private Limited Company can be very expensive to create, as it must pay not only taxes and employee insurance but also any legal fees or other incidentals involved in the business.
    - - Registered directors of Private Limited Companys must maintain impeccable records of profits and losses, including income and expenditures.
    - - Even though shares in a Private Limited Company cannot be publicly traded, information concerning the company is made public. Account balances and details about the company’s directors, including their names and contact information, must be made available upon request.