Accounts of Limited Companies (Byte Size)
Limited companies are the most important form of business organisation within capitalist countries. Indeed, it is difficult to see how capitalism could have taken root so effectively without this particular vehicle for business activity. In this course, we identify the key features of the limited company that has made it such a successful form of business organisation. We also consider the way in which limited companies are financed and the restrictions that are placed on the owners' ability to withdraw their funds from the company.
By the end of this course, you should be able to:
- identify the critical features of a company, notably its separate legal entity; the relationship between shareholders and directors; and limited liability
- explain the main forms of share capital and loan capital associated with limited companies
- explain the nature of rights issues and bonus issues of shares
- identify the legal and practical restrictions that exist with regard to transferring funds to shareholders, including the payment of dividends