Transcript Private Limited Companies ‘LTD’

Private Limited Companies
‘LTD’
, 2013
Year 10 Business Studies
What do YOU see?
Learning Objectives
£
££
To know what ‘LTD’ stands for
To explain 2 advantages and 2
disadvantages of being a ‘LTD’
£££ To discuss how a ‘LTD’ is set up
Business Ownership so far…
1) Joe the Window Cleaner
2) Partnerships
3) McDonalds
Next type of ownership suitable for an
entrepreneur…to become a ‘LTD’
What is an ‘LTD’? Burrs LTD
Imagine….your wildest dreams come true…Miss B
leaves teaching to set up her own business…cake
baking
No to Sole Trader, Partnership and Franchise
Doesn’t like the idea of ‘Unlimited Liability’
At the same time, she wants her business to
expand in the future…she will need a lot of finance
She reckons she has some wealthy family who
could be persuaded to invest in her company for a
share of any future profits
Limit the risk to her investors…also known as….?
Limited Liability – means they would only lose
what money they put into her company
Who owns a private LTD
company?
Shareholders, BUT
Shares in a private limited company
are not available to general public
Shares can be a way of raising
capital
Creating a Private LTD
Company
Business goes through a process called
Incorporation to gain LIMITED
LIABILITY.
http://www.companieshouse.gov.uk/
Business = Company, which will have a
separate legal identity, i.e. if Miss Burr
dies, her company can still be sued in
court and remain in existence.
Prove to the authorities (Government and
Companies House) the business is
operating properly and is secure.
Examples of Private Limited
Companies
Bennetts Funerals Directors Ltd
Hearing Solutions Limited
CVS International Ltd
http://www.cvsinternational.co.uk/
Limited Liability
All shareholders have limited
liability
What is limited liability?
Who are the owners?
Should we be an LTD?
What are dividends?
A dividend is what the shareholder
receives from the companies profits
The more money an individual puts
in, the more dividend they receive
BUT, the company may decide not
to pay a dividend and keep the
profits in the business
Plenary Activity
GOOD spelling and punctuation are
important in buisness!
Why?
READ through the paragraph of text about
why spelling and punctuation are
important in business – try to SPOT all
the mistakes!