Private Limited Company (Ltd)

1. That state the company's details, responsibilities of directors and shareholders' rights

Adjunto:

• Sources of finance

1. Company profits from previous years
2. Inviting a new shareholder to join
3. Bank loan
4. Bank overdraft
5. Government grants
6. Trade credit
7. Debt factoring

1. Shareholders have limited liability
2. Control of company not lost to outsiders
3. More finance can be raised from shareholders and lenders
4. Significant experience and expertise from shareholders and directors

1. Profits shared amongst people
2. There is, as with a partnership, a legal process in setting up the company
3. Shares cannot be sold to the public therefore finance is more difficult than for a public limited company
4. Firm has to abide by requirements of the Companies Act
5. Scottish-based firms must provide Companies House in Edinburgh with a copy of the annual accounts. They are available to anyone who requests a copy

1. To maximise profits
2. To grow
3. To have a strong status
4. To have the highest possible sales revenue