With the use of cases and/or examples, explain FOUR (4) of the following terms as used  in company law:   Fixed charges Preference shares Registration of charges No par value Capital maintenance

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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With the use of cases and/or examples, explain FOUR (4) of the following terms as used  in company law:

 

  1. Fixed charges
  2. Preference shares
  3. Registration of charges
  4. No par value
  5. Capital maintenance
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Step 1

INTRODUCTION

A company is a legitimate organization formed by a group of people to conduct and manage an industrial or commercial venture. Depending on the corporate legislation of its state, a firm may be set up in a variety of forms for taxation and financial responsibility considerations.

A business is an artificial legal entity with the ability to buy, sell, and enter into agreements in its own name as well as file legal claims against and also be sued by third party companies.

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