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What is the function of a limited company?
A limited company (Ltd) is that which is limited by shares and listed on the stock market. Its function is ultimately to make profit for its shareholders.
The difference between profit and wealth?
Profit is the amount made for as company on the sales of a product or service after taxeswealth can be an amount which is not earned i.e. lottery win, shares sold making money for shareholder, inheritance or accumulated wages from working
Bonus shares represent simply a division of corporate pie into alarge number of pieces explain?
Bonus shares are issued out of free reserves and balance in profit and loss account. These amounts get accumulated over a period of time. Such accumulation makes it a larger pie.These accumulated amount belong to the shareholders. These got accumulated instead of paying dividends. The larger pie is now distributed to the shareholders. Such a distribution is made on the basis of existing shareholding. Hence bonus shares is nothing but distribution of the larger pie to all by distributing them in small pieces in the ratio of the shares they hold.
How does a company limited by guarantee differ from a company limited by shares?
A company limited by guarantee does not have shareholders or share capital; instead, it has members who guarantee to contribute a predetermined amount toward the company's liabilities if it is wound up. This structure is often used for non-profit organizations, charities, or clubs. In contrast, a company limited by shares has shareholders who own shares in the company and are entitled to dividends and a share of the profits. The liability of shareholders is limited to the unpaid amount on their shares, protecting personal assets in case of the company's debts.
What do you call a business in which many investors own shares?
PLC public limited company Other terms: - For profit C-corporation. - S-corporation.
Can a pvt limited company be a partner in partnership firm?
Liability of a Pvt limited Company is limited - a mith. The fact is that liability of a share holder of a limited company is limited to the extent of value of the shares. In other words, the other assets of the shareholder can not attached for default of the company. So the liability of a limited company is limited to the assets of the company, not limited to the face value of the shares. On the other hand the partner of a partnership company has unlimited liability. i.e., the assets of the partner can be attached in case of default. Similarly, when a pvt limited company is a partner the liability of the company is unlimited and to the extent of assets of the company not to the assets of individual shareholders. So a limited company is a legal entity and can become a partner or proprietor of a firm.
What is the definition of a partner?
Someone who shares with you.
How can you earn form buying shares of a company if you buy a share of company eg company have 1000 share you buy 100 shares now company have net profit 10000 after deducting all expenses now how much?
If you buy 100 shares of a company that has 1,000 total shares and the company reports a net profit of $10,000, your share of the profit can be calculated based on your ownership percentage. Since you own 10% of the shares (100 out of 1,000), you would be entitled to 10% of the net profit, which amounts to $1,000. This profit can be distributed as dividends or reflected in the increased value of your shares.
How do you calculate profit earned per share?
divide the profit total by the number of shares
What is a profit making business operating as separate legal entity in which ownership is divided into shares of stock?
A profit-making business that operates as a separate legal entity with ownership divided into shares of stock is known as a corporation. In this structure, the corporation can enter into contracts, sue or be sued, and is distinct from its shareholders, who own shares representing their ownership stake. This allows for limited liability, meaning shareholders are typically not personally responsible for the corporation’s debts beyond their investment in shares. Corporations can raise capital by issuing additional shares to investors.
What is Cumulative preferred?
preference shares has the preferred right to get profit or dividend from profit of the company every year. If company not pay the profit in any year even then in cummulative preference shares case profit for that year keep continues to add until it is paid on the other hand in case of non-cummulative preference shares if company not declare profit distribution for any year it will not add to next period.
What is the goal of financial decisions?
To make a profit or a bigger profit. To maximize the wealth of stockholders or price of the shares
