Limited liability company
This presentation is the property of its rightful owner.
Sponsored Links
1 / 24

LIMITED LIABILITY COMPANY PowerPoint PPT Presentation


  • 95 Views
  • Uploaded on
  • Presentation posted in: General

LIMITED LIABILITY COMPANY. YEAR 8. Lesson Objectives. Students will be able to define a private limited company. 2. Students will be able to describe the characteristics of a private limited company.

Download Presentation

LIMITED LIABILITY COMPANY

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Limited liability company

LIMITED LIABILITY COMPANY

YEAR 8


Lesson objectives

Lesson Objectives

  • Students will be able to define a private limited company.

    2. Students will be able to describe the characteristics of a private limited company.

    3. Students will be able to explain advantages and disadvantages of a private limited company.


Success criteria

SUCCESS CRITERIA

  • All students will be able to define private and public limited companies.

  • Most students will be able to describe the characteristics of private and public limited companies.

  • Some students will be able to explain advantages and disadvantages of private and public limited companies.


  • Do now

    DO NOW

    Write in a minute what you would do if you won a

    lottery?

    How would you use the money?


    Starter

    STARTER

    Name five companies which names end with Plc.


    Limited liability

    LIMITED LIABILITY

    Type of investment in which an investor cannot lose more than the amount invested.


    Limited liability company meaning

    LIMITED LIABILITY COMPANY - MEANING

    A corporate structure whereby the members of the company cannot be held personally liable for the company's debts or liabilities.


    Class activity

    Class Activity

    Why is ‘limited liability’ important to an investor?


    Characteristics of a private limited company

    Characteristics of a Private Limited Company

    Closely held businesses usually by family, friends and relatives.

    Private companies may issue stocks and have shareholders.

    Their shares do not trade on public exchanges and are not issued through an initial public offering.

    Shareholders may not be able to sell their shares without the agreement of the other shareholders.


    Class activity1

    Class Activity

    How is a private limited liability company different from a partnership?


    Advantages of a private limited liability company

    Advantages of a Private Limited Liability Company

    • Limited Liability: It means that if the company experiences financial distress because of normal business activity, the personal assets of shareholders will not be at risk of being seized by creditors.

    • Continuity of existence: business not affected by the status of the owner.

    • Minimum number of shareholders need to start the business are only2.

    • More capital can be raised as the maximum number of shareholders allowed is 50.

    • Scope of expansion is higher because easy to raise capital from financial institutions and the advantage of limited liability.


    Disadvantages of a private limited company

    Disadvantages of a Private Limited Company

    Growth may be limited because maximum shareholders allowed are only 50.

    The shares in a private limited company cannot be sold or transferred to anyone else without the agreement of other shareholders


    Class activity2

    Class Activity

    What can be done to solve the problems of a private limited company?


    Home work

    HOME WORK

    What encourages people to buy shares in the ownership of a private limited company? (10marks)

    Due Date: 24/09/14

    Helpline:[email protected]

    • Knowledge 1 – 4 marks

    • Application 4 – 6 marks


    Lesson 2

    Lesson 2

    PUBLIC LIMITED LIABILITY COMPANY


    Public limited liability company

    PUBLIC LIMITED LIABILITY COMPANY

    PUBLIC LIMITED LIABILITY COMPANY


    Lesson objectives1

    Lesson Objectives

    • Students will be able to define a public limited company.

      2. Students will be able to describe the characteristics of a public limited company.

      3. Students will be able to explain advantages and disadvantages of a public limited company.


    Success criteria1

    Success Criteria

    All students will be able to define a public limited companies.

    Most students will be able to describe the characteristics of a public limited company.

    Some students will be able to explain advantages and disadvantages of a public limited company.


    Public limited liability company1

    PUBLIC LIMITED LIABILITY COMPANY

    A company whose securities are traded on a stock exchange and can be bought and sold by anyone. Public companies are strictly regulated, and are required by law to publish their complete and true financial position so that investors can determine the true worth of its stock (shares).


    Characteristics of a public limited liability company

    Characteristics of a Public Limited Liability Company

    • Minimum of two shareholders

    • Shareholders own the company and receive profits

    • Shares can be sold publicly on the stock market

    • Shareholders cannot be sued

    • Limited liability

    • Holds AGMs

    • Directors run the company


    Class activity3

    CLASS ACTIVITY

    CLASS ACTIVITY

    Why is it likely to be easier for a public limited company to raise capital than a private limited company?


    Advantages of a public limited liability company

    Advantages of a Public Limited Liability Company

    • There is limited liability for the shareholders.

    • The business has a separate legal entity. There is continuity even if any of the shareholders die.

    • These businesses can raise large capital sum as there is no limit to the number of shareholders.

    • The shares of the business are freely transferable providing more liquidity to its shareholders .


    Disadvantages of a public limited liability company

    Disadvantages of a Public Limited Liability Company

    • There is limited liability for the shareholders.

    • The business has separate legal entity. There is continuity even if any of the shareholders die.

    • These businesses can raise large capital sum as there is no limit to the number of shareholders.

    • The shares of the business are freely transferable providing more liquidity to its shareholders .


    Home work1

    Home work

    • Explain 2 similarities and 3 differences between private and public limited companies.

      Assessment criteria:

    • 1 mark for each point identified.

    • 1 mark for further explanation of the point identified.

      Due Date: 26/09/14

      Helpline: [email protected]


  • Login