highly qualified and experienced professional executives and pay corporation tax on profits

managers from around the world.

ownership and control is centered in the host city. raises capital by selling shares Advantages:
Features of limited companies limited liability -> liable only for money invested -> if
highly influential both economically and politically. incoporated business business fails -> the owner will not lose his personal
possessions.
very efficient since they can exploit huge economies of scale. Multinational:large business with significant production limited liability continuity -> business will not end if one the shreholders/
Advantages: or service operations in at least 2 different countries. owners leave.
shareholders elect directors to run
limited liabilty. highly adavanced and up-to-date technology. more capital -> selling shares -> may be easier to get bank
the company
continuity. loans.
more capital. powerful advertising and marketing capability. specialised management -> shareholders/owners/
specialised management. managers can do the work they are skilled at.
invited shareholders. invited shareholders -> able to maintain control.
divorce of ownership and control possible. Public limited companies: businesses which are Private limited companies: businesses which are owned divorce of ownership and control possible -> the owner
owned by the shareholders who have limited liability.by shareholders who have limited liability. Their shares are may not spend all time managing.
Their shares are avaliable to others by selling to thenot available to others except with the agreement of other
Disadvantages: general public often on the Stock Exchange. They shareholders. They are generally recognised with Ltd after Disadvantages:
cost of setting up -> must have £50,000 share capital. are generally recognised with plc after the business their business name. legal procedure in setting up takes time and costs money.
need to share profit with shareholders. name. having to disclose the accounts -> financial info filed with
affairs not kept private -> need to publish accounts -> the Registrar can be looked at by the public/competitors.
Limited Companies and Multinationals profits have to be shared with the other shareholders.
more expensive to produce.
may lose control/may need to share decision-making -> if slower decision-making -> especially if all shareholders
another shareholder gains majority control. have to be consulted.
limited capital avaliable -> unable to use stock Articles of Association - deals with the internal
market/reduced investors avaliable. running of the company includes: - rights of
-restriction on share ownership -> shareholders have to
shareholders depending on the type of share they
agree on sale of shares.
Memorandum of Association includes: hold.
name of the company. procedures for appointing directors.
name and address of the company's registered length of time directors should sreve before re-
office. election.
-objectives of the company and the nature of its timing and frequency of company meetings.
activities. arrangements for auditing company accounts.
amount of capital to be raised abnd the number of
shares to be issued.
minimum of 2 members, but no upper limit.
Forming a limited company 2 documents has to be sent to the Registrar of
Companies: memorandum of association and articles of
association
if those 2 documents are accpeted -> certificate of
incorporation - document needed before a new company
can start doing business.