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    Limited Companies and Multinationals

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    abyaazshafiashraf
    The document discusses different types of business organizations including limited companies, private limited companies, and public limited companies. It also discusses multinational companies and their key features such as large assets, experienced executives, powerful marketing, economic and political influence, and efficiency through economies of scale.

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    Limited Companies and Multinationals

    Uploaded by

    abyaazshafiashraf
    22 views2 pages
    The document discusses different types of business organizations including limited companies, private limited companies, and public limited companies. It also discusses multinational companies and their key features such as large assets, experienced executives, powerful marketing, economic and political influence, and efficiency through economies of scale.

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    Economics

    Original Title

    4.-Limited-companies-and-multinationals-

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    The document discusses different types of business organizations including limited companies, private limited companies, and public limited companies. It also discusses multinational companies and their key features such as large assets, experienced executives, powerful marketing, economic and political influence, and efficiency through economies of scale.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    22 views2 pages

    Limited Companies and Multinationals

    Uploaded by

    abyaazshafiashraf
    The document discusses different types of business organizations including limited companies, private limited companies, and public limited companies. It also discusses multinational companies and their key features such as large assets, experienced executives, powerful marketing, economic and political influence, and efficiency through economies of scale.

    Copyright:

    © All Rights Reserved
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    Download as pdf or txt
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    Knockout .Economics-No.

    1 Economics and Business Studies Tutors


    www.knockouteconomics.com
    Private class, Small Course, Online course :@Knockout.economics
    Chapter 1.4
    Limited companies and multinationals

    1. Limited companies
    • Meaning : business organisations that have a separate legal identity from that of their owners.
    • Main features :
    - Limited liabilities : shareholders are legally responsible for the debts of a company according to
    how many shares they own.
    - The business raises capital by selling shares.
    - Shareholders receive dividend.
    - The shareholders elect directors to run the company.
    - Whereas sole traders and partnerships pay income tax, companies pay corporation tax on
    pro ts.
    - It is necessary to follow a legal producer.

    1.1 Private limited companies


    • Features of private limited companied
    - Shares can only can be transferred “ privately” (from one individual to another).
    - All shareholders must agree on the transfer and they cannot be advertised for sale.
    - They are often family businesses owned by family members or close friends.
    - The directors of these rms tend to be shareholders and are involved in the running of the
    business.

    1.2 Public limited companies (PLCs) : tend to be larger than private limited companies. Their
    shares can be bought and sold by the public on the stock exchange.
    • Going public can be expensive because
    - The company needs lawyers to ensure that the prospectus is “legally” correct
    - The company must insure against the possibility of some shares remaining unsold, therefore, a
    fee is paid to an underwriter who must buy any unsold shares.
    - There are advertising and administrative expenses

    No part of this resource may be reproduced, distributed, or transmitted in any form by any means for non-personal use
    without the prior written permission from Knockout.Economics
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    Knockout .Economics-No.1 Economics and Business Studies Tutors
    www.knockouteconomics.com
    Private class, Small Course, Online course :@Knockout.economics
    1.3 Multinational Companies
    Meaning : Larger business with signi cant production or service operations in at least two
    di erent countries.
    • Key features of a multinational include :
    - Huge assets (Land, building, plants machinery and money)
    : Multinationals are extremely well-resourced and can often a ord to take on large-scale
    contracts.
    - Highly quali ed and experienced professional executives and managers
    - Powerful advertising and marketing capability
    - Highly in uential both economically and politically
    - Very e cient since they can exploit huge economies of scales
    - Ownership and control is centred in the host country

    No part of this resource may be reproduced, distributed, or transmitted in any form by any means for non-personal use
    without the prior written permission from Knockout.Economics
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