Long John and friends want to set up a retail business. They have considered various forms of businesses and are leaning towards forming a limited liability company. You are required to explain the following to Long John and friends: Three advantages of forming a company ii. The meaning of the term “limited liability”
Long John and friends want to set up a retail business. They have considered various forms of businesses and are leaning towards forming a limited liability company. You are required to explain the following to Long John and friends: Three advantages of forming a company ii. The meaning of the term “limited liability”
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Long John and friends want to set up a retail business. They have considered various forms of businesses and are leaning towards forming a limited liability company. You are required to explain the following to Long John and friends:
Three advantages of forming a company
ii. The meaning of the term “limited liability”
iii. The various sources of capital for a limited liability company
iv. Explain the following terms
• Authorized Share Capital
• Issued Share Capital
• Bonus Shares
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