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Are loans to shareholders and subsidiary companies included in third party liability when calculating your public interest score?
Wiki User
∙ 12y ago
Go do your JHM 221 assignment u lazy bugger ;)
Wiki User
∙ 12y ago
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What is a parent company?
A corporation is owned by its shareholders. A number of people (shareholders) can invest their money into a corporation and own shares in that company. In a parent company, a company such as the one above starts up another corporation (subsidiary corporation), and the original (parent) company itself owns the shares of the subsidiary. The individual shareholders of the parent own the subsidiary, but indirectly. They are not, themselves, shareholders in the subsidiay -- the parent owns the shares. One of the reasons for this is to "limit" the liability of shareholders. If the parent owns several subsidiares, and one of them gets into financial difficulty, it can be closed down (or sold) without upsetting the operations of the other subsidiaries. Selling one operation as a subsidiary is also easier because it is financially "self-contained." Similarly, if a person or a group of people owns several corporations, they can form a "holding" company, and transfer their shares of each companyinto it, rather than holding them personally. The individuals then become shareholders in the holding (parent) company, and the parent company owns the shares in each of the original companies, which then are subsidiaries of the parent. Indiviuals own shares in parent.> Parent owns shares in each subsidiary.
What is limited liability?
shareholders are not responsible for the debts of the corporation.
What is the full form for Ltd?
When part of a company's legal name, Ltd. stands for "Limited" and implies that the business is an incorporated company having some form of share structure. The "limited" derives from the provincial, state, or federal law(s) regarding incorporation of companies which provide a limited liability to the directors and shareholders of a company. An incorporated company of limited liability is treated as its own legal entity separate from its directors, shareholders, and employees.Generally speaking, companies using Ltd. in their legal name may be either public companies or private companies. The use of "Inc.", abbreviated from "incorporated", is generally synonymous with Ltd. in indicating an incorporated company.LLC's (Limited Liability Companies) typically fall under different regulations and statutes than incorporate companies regarding the liabilities held by the directors and shareholders.
What is private liability?
Private liability is a type of company that offers limited liability. This limited liability can also include limited legal protection for its shareholders.
What are the Journal entries for a sale of subsidiary?
There are several important journal entries for the sale of a subsidiary. These include: Fixed assets, current assets, current liability, deferred tax liability, and goodwill.
What is it called when Shareholders do not have to pay the debts of the corporation?
limited liability
What is a type of liability in which you only lose your initial investment in the company?
A type of liability in which you only lose your initial investment in the company is limited liability. This means that shareholders or owners are only responsible for the debts and obligations of the company up to the amount they initially invested, and their personal assets are not at risk. This is commonly seen in the form of limited liability companies (LLCs) and corporations.
What kind of account is Note Payable - shareholders?
Notes Payable is a Liability.
Does limited liability make it easier to attract more shareholders?
yes, limited liability attracts the investment of share holders.
Does tesco plc have limited or unlimited liability?
it is a plc therefore it has unlimited liabilty, it's shareholders however, have limited liability.
What is the difference between Accountability and liability?
Liability is where a business allows shareholders to have control over a business. Liability in French means check out my big saggy old man balls.
What is the difference between a Ltd company and a none Ltd company?
Ltd is an abbreviation for Limited Liability; a limited company has limits to its liability; if the company goes bankrupt, or is sued, the liability does not extend to the shareholders in the company. A non-limited company; usually sole traders or partnerships, has unlimited liability - if a plumber floods your house, he is liable and you can sue him. Most non-limited companies have insurance to cover this kind of eventualility.
