Limited companies are the most important form of business organisation within capitalist countries. Indeed, it is difficult to see how capitalism could have taken root so effectively without this particular vehicle for business activity. In this course, we identify the key features of the limited company that has made it such a successful form of business organisation. We also consider the way in which limited companies are financed and the restrictions that are placed on the owners' ability to withdraw their funds from the company.

By the end of this course, you should be able to:

• identify the critical features of a company, notably its separate legal entity; the relationship between shareholders and directors; and limited liability
• explain the main forms of share capital and loan capital associated with limited companies
• explain the nature of rights issues and bonus issues of shares
• identify the legal and practical restrictions that exist with regard to transferring funds to shareholders, including the payment of dividends

Introduction

Objectives

Section 1: Limited Companies - An Overview

1.1 The Main Forms of Business Enterprise

1.2 The Legal Nature of a Limited Company

1.3 Shares, Shareholders and Directors

1.4 Liability of Shareholders

1.5 Types of Company

1.6 Formation of a Limited Company

1.7 Ownership of Companies

Section 2: Share Capital and Loan Capital

2.1 The Main Types of Share Capital

2.2 Share Premium

2.3 Ordinary Shares

2.4 Preference Shares

2.5 Raising Share Capital

2.6 Rights Issues

2.7 Bonus Shares

2.8 Long-Term Loans

Section 3: Reserves

3.1 Revenue Reserves

3.2 Capital Reserves

Section 4: Transferring Funds to Shareholders

4.1 The Need For Rules

4.2 Dividends

4.3 Redemption of Shares and Share Repurchase

4.4 Liquidation

Summary

Review Activity

Recommended Reading

Tutor-marked Question Paper

Qualification 1: Accounts of Limited Companies (Byte Size) Certificate

Accounts of Limited Companies (Byte Size) Certificate issued by Stonebridge Associated Colleges, entitling you to use the letters SAC Cert after your name.

In order to offer our students the most convenient and flexible distance learning courses, Stonebridge Associated College offers you the option to study for your course via two methods:

• 1. Via the traditional paper-based method.
• 2. Through the online method via ElearnUK.

When you study through ElearnUK you can quickly access your course material online and submit all of your question papers to your tutor online, using your unique student account. You have access to all of your course material immediately, and when you submit question papers, your tutor sends you an email containing your results and feedback.

With this course you will have unlimited access to your own personal tutor who specialises in their field of study. It is your personal tutor's role to ensure that you receive constructive feedback and to deal with any queries you may have. You are more than welcome to telephone, fax or email your personal tutor.

You will also have access to a dedicated and friendly team of administrators and course advisors who offer sound and professional guidance and advice when you need it. This ensures that you will never feel neglected and that you will always succeed!

There is no experience or previous qualifications required for enrolment on this course. It is available to all students, of all academic backgrounds.

This is only an approximate figure and is dependant upon how much time you can dedicate to your studies and how well you grasp the learning concepts in the course material. Furthermore, at the end of each lesson there is a question paper that needs to be completed and returned to your tutor. You should allow at least 1 - 2 hours of study to complete each question paper.

The approximate amount of time required to complete the course is: 20 hrs.

Assessment Method

After each lesson there will be a question paper, which needs to be completed and submitted to your personal tutor for marking. This method of continual assessment ensures that your personal tutor can consistently monitor your progress and provide you with assistance throughout the duration of the course.

What's Included

• All study materials
• Study Guide
• Full Tutor and Admin support

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