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Importance of profit maximization for a public limited company?
Profit maximisation let the run business perfectly and better uses of resources or to pay dividend to the shareholders however also to expand their business to attract more new shareholders or give shareholder to reinvest in their company.
Is economics the study of mankind in the ordinary business of life?
No, economics is the study of how people deal with the condition of scarcity with limited allocations of resources.
What is the difference between ordinary partnership and limited partnership?
In an ordinary partnership, all partners share equal responsibility for managing the business and are personally liable for its debts. In contrast, a limited partnership consists of at least one general partner, who manages the business and bears unlimited liability, and one or more limited partners, who contribute capital but have limited liability and do not participate in management. This structure allows limited partners to invest without risking more than their investment amount.
Is problem of choice is unavoidable in the ordinary business of life how?
Yes , it is rightly said that problem of choice is unavoidable in ordinary business life . It is because our wants are limited and the resources to statisfy them are limited moreover they have alternative usesFor example worker can render his sevices either in company A,B OR C . He has to make choice between the three . So we can say that problem of choice is unavoidable
What are the benefits of registering an OPC in India?
The benefits of registering a One Person Company (OPC) in India include: Limited Liability: The shareholder’s liability is limited to the amount of capital invested in the company. Separate Legal Entity: An OPC has its own legal identity, separate from its shareholder. Continuity of Business: The nomination of a nominee ensures the continuity of business in case of the shareholder’s death or incapacity. Ease of Compliance: OPCs enjoy certain exemptions and simplified compliance requirements compared to other types of companies. Credibility: Registration as a company enhances the credibility and trustworthiness of the business. Single Ownership: The single shareholder has full control over the company’s decisions, leading to faster decision-making. These questions and answers cover the fundamental aspects of registering an OPC in India, providing a comprehensive understanding of the process.
What does the word Limited stand for in Private Limited Company and Public Limited Company?
The word "limited" stands for "limited liability". This means that the liability of a shareholder in a company for the company's debts (for example, in an insolvency or liquidation scenario) is "limited" to any unpaid capital on their shares. In most cases, there will be no amount unpaid (ie. a fully paid share) and so no liability of a shareholder for the company's debts.
Who regulates limited companies?
Limited companies are regulated by the government agency responsible for business registrations in a particular country. This could be the Companies House in the UK, the Securities and Exchange Commission in the USA, or similar agencies in other countries. Additionally, limited companies must adhere to laws and regulations set by the government to ensure transparency, accountability, and compliance with business practices.
What are the benefits of limited liability for the individual shareholder?
One of the main benefits is that if company fails, then the owners (shareholders) don't have to pay the company's debts. Only the investment (in the form of shares) that has been put into the business can be used to pay off the debts. It's also alot easier to raise capital than in a sole tradership or a partnership, as people can invest in the form of shares.
Charaterlistic of ordinary and limited partnership?
Ordinary partnership is a business entity run by partners. Partners have unlimited liability. The partners share the profits or losses of the business according to the ratio they had agreed upon. The maximum number of partners are 20. But under limited partnership the partners do not have personal liability. They do not share in the debt of the business. This type of partnership is found in large projects. However in return for his personal liability protection, he cannot play an active role in the management.
When does a company become a limited company?
Limited company refers to a company whose liabilities are limited to the number shares of shareholders. During the time of winding up the business shareholders are liable to pay only the remaining amount that has to be paid as shares. If a shareholder had already paid full amount of his shares for him there is no need to pay any money.Limited company is different from limited liability company.
A sentence using the word company?
Every private limited company must have at least one shareholder.
What are the different types of shares in a limited company?
There are two types of shares in a limited company.1. Preference shares : They receive an agreed percentage rate of dividend before ordinary shareholders get anything. They generally don't have voting rights and cannot take part in the decision-making process of the business.2. Ordinary shares : They receive the remainder of the total profits available for dividends. There is no upper limit to the amounts of dividends they can receive. Ordinary shareholders have voting rights in the firm and play an active part in the management of the business.
