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18 Cards in this Set
- Front
- Back
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Def of limited company |
Its a legal identity which has separate identity from its shareholders and whose liability for the company’s debts is limited |
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What does limited liability mean |
The shareholders of the company are only liable for the debts of the company up to the amount they agree to pay for their shares |
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What’s authorised share capital |
The max amount of share capital the company was allowed to issue |
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What’s issued share capital |
This is the number of shares issued to members for cash |
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What’s called up share capital |
The total amount a company has requested from the shareholders |
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What’s called up share capital |
The total amount of share capital a company has requested from the shareholders |
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What’s paid up capital |
The total amount of called up share capital for which the the cash has actually been received |
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What’s paid up capital |
The total amount of called up share capital for which the cash has actually been received |
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Name two types of shares |
Preference share Ordinary shares |
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Name two types of shares |
Preference share Ordinary shares |
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Characteristics of preference share capital |
1) they receive a fixed rate of dividend which is payable before any dividend is payable to the ordinary share holders 2) the dividend is the same every year 3) if a company is wound up any money left is used to pay back the preference shareholders 4) not entitle to vote at shareholders meetings |
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Name two types of shares |
Preference share Ordinary shares |
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Characteristics of preference share capital (4) |
1) they receive a fixed rate of dividend which is payable before any dividend is payable to the ordinary share holders 2) the dividend is the same every year 3) if a company is wound up any money left is used to pay back the preference shareholders 4) not entitle to vote at shareholders meetings |
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Characteristics of ordinary shareholders |
1) the dividend of ordinary shareholders is only payable after that on preference shares 2) if the trading results are poor the ordinary share holders may not receive any dividend at all 3) entitle to vote at shareholders meetings 4) if a company is wound up the preference shareholder are repaid before any money are returned to the ordinary shareholders |
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Name two types of shares |
Preference share Ordinary shares |
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Characteristics of preference share capital (4) |
1) they receive a fixed rate of dividend which is payable before any dividend is payable to the ordinary share holders 2) the dividend is the same every year 3) if a company is wound up any money left is used to pay back the preference shareholders 4) not entitle to vote at shareholders meetings |
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Characteristics of ordinary shareholders |
1) the dividend of ordinary shareholders is only payable after that on preference shares 2) if the trading results are poor the ordinary share holders may not receive any dividend at all 3) entitle to vote at shareholders meetings 4) if a company is wound up the preference shareholder are repaid before any money are returned to the ordinary shareholders |
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Characteristics of debentures |
1) carry a fixed rate of internet which is payable whether or not the company is making profit 2) appears in the profit and loss account of income statement as an expense 3) not entitle to vote 4) if a company is wound up, debentures shareholders will be repaid before any capital is repaid to shareholders |
