By George Bright (auth.)
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Extra info for Practical Accounts 2
Example text
What are the differences in practice between the two? There 44 Practical Accounts 2 are more private than public companies in existence. The main advantage which public companies have is that it is possible for them to sell their shares to the general public. For example, a public company can apply to the Stock Exchange to have its shares dealt in on the Exchange; a private company cannot. The main disadvantages are that the public company has more regulations to comply with and has to provide more information about its affairs to such people as the Registrar of Companies.
The procedure therefore is relatively straightforward. In addition to either 'doing-it-yourself' or with the help of a solicitor, it is also possible to buy a ready-made company from businesses who specialise in company formation, at a cost of approximately £100. Advertisements for these can usually be found in any financial paper. Self-check Complete the blanks in the following sentence: A private limited company is _____ and is able to trade when the of Companies issues a _____ of _ _ _ __ ANSWER A private limited company is formed and is able to trade when the Registrar of Companies issues a Certificate of Incorporation.
Read through this- it can be very interesting and will give you some idea of the accounts produced by a real company. Keep an eye on your company's share price and cut out any articles on its performance. All of this will help to improve your knowledge of the business world and of a particular company. This can be a very valuable exercise, especially if you buy a few shares yourself! 3 Manufacturing accounts Introduction So far you have studied various aspects of the accounts of sole traders, partnerships and limited companies- different types of ownership of businesses.