- Each company has its own identify in law
- the company employs staff, not the owners
- the company owns assets not the owner
- the company operates until in formally wound up/ liquidation
- the company pays co-operation tax on its profits
ADVANTAGES
- limited liability
- minimum of 1 director + 1 shareholder
- easy to set up/ affairs still private
- easier to raise capital/ borrow from bank
- death of shareholder has no effect on company
DISADVANTAGES
- cannot sell shares to public
- more regulations to comply with
- account procedures may be more costly
- death of shareholder has no effect on company
- share transfers need agreement of all
ADVANTAGES
- limited liability
- increased capital as public can buy shares
- min of 2 directors + 2 shareholders
- shares increase in value if company sucessful
- operating large scale can lower cost per unit
- many regulations to comply with
- accounts (and problems) are public knowledge
- shareholders may sell shares of dividends porr
- original owner may lose overall control
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