OBJECTIVE:
The objective of this written assignment is for you to provide a comprehensive description of both the advantages and disadvantages of a limited company. Thereafter you are to assess how the structure and characteristics of a company differ from that of a sole trader and partnership.
TASKS:
You should identify the nature of a limited company by providing an analysis of its structure and characteristics. There should be an assessment of the different types of company such as the differences between a company limited by shares and one limited by guarantee. The difference between a private limited company and public limited company should be explained. However, you should concentrate on a private limited company, limited by shares.
There should be a detailed analysis of the structure of a limited company and how this is regulated by the Companies Act 2006. A description of the process of incorporation would be useful. You should then go onto analyse the mechanism for ownership of a company and a description of various classes of shares in a company. You should also provide an analysis of the differences between the officers of a company (such as the directors), its members and their respective rights and duties.
An analysis of the advantages and disadvantages of the various characteristics of a limited company is an essential requirement.
Thereafter you need to provide a further analysis of the characteristics of the two principal alternative forms of business organisation, namely, sole traders and partnerships. A description of the different types of partnership would be helpful. Your conclusion should offer a comparison between companies, sole traders and partnerships.
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