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  • ,) Cfinilion: Advantages of Partnership: Private Limited Company

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    Aditya Prabhakar
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    1. A joint stock company is an association of many persons who contribute money or assets to a common stock to employ in a business, sharing profits and losses. There are two types: private limited and public companies. 2. A private limited company has a minimum paid-up capital and limits membership to 50, prohibits public share offerings, and restricts share transfers. It provides advantages like easy formation with just two persons and exemptions from statutory meetings and prospectuses. 3. Partnerships have advantages like easy formation and no compulsory registration, but also disadvantages like unlimited liability, lack of harmony, difficulty expanding, and limited resources. Joint stock companies address these issues through greater financial resources, managerial talent, and

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    1. A joint stock company is an association of many persons who contribute money or assets to a common stock to employ in a business, sharing profits and losses. There are two types: private limited and public companies. 2. A private limited company has a minimum paid-up capital and limits membership to 50, prohibits public share offerings, and restricts share transfers. It provides advantages like easy formation with just two persons and exemptions from statutory meetings and prospectuses. 3. Partnerships have advantages like easy formation and no compulsory registration, but also disadvantages like unlimited liability, lack of harmony, difficulty expanding, and limited resources. Joint stock companies address these issues through greater financial resources, managerial talent, and

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    15 views1 page

    ,) Cfinilion: Advantages of Partnership: Private Limited Company

    Uploaded by

    Aditya Prabhakar
    1. A joint stock company is an association of many persons who contribute money or assets to a common stock to employ in a business, sharing profits and losses. There are two types: private limited and public companies. 2. A private limited company has a minimum paid-up capital and limits membership to 50, prohibits public share offerings, and restricts share transfers. It provides advantages like easy formation with just two persons and exemptions from statutory meetings and prospectuses. 3. Partnerships have advantages like easy formation and no compulsory registration, but also disadvantages like unlimited liability, lack of harmony, difficulty expanding, and limited resources. Joint stock companies address these issues through greater financial resources, managerial talent, and

    Copyright:

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    of 1

    1.

    30 Ilistorical development
    1.31
    Principle Of Management
    Advantages of partnership ,)cfinilion:
    1. It is easy to formation. "By a company we mean an association of many persons who
    2. Registration is not compulsory. 1011 tribute money or money's worth to a common stock and employ it in

    3. Larger financial resources. olne trade or business and also share the profit and loss as the case may
    4. Greater managerial talent. Ill' arising there from".
    - Lord Justice Lindleg
    5. Promptness in decision making.
    6. The risk of business is shared by more persons. There are two types of joint stock companies.
    7. More possibility of growth and expansion of the business. 1.3.8.2. Private Limited Company
    8. Close supervision is possible for this business. It reduces A private limited company is a company which has a minimum paid
    wastages.
    "I' capital as may be prescribed. The articles of association may prescribe
    9. There can be any change in managerial setup capital and scale of 111l: following.
    operation.
    1. Restricts the right to transfer the shares, if any.
    10. Prediction of minority interests is in this type of business.
    2. Limits the number of its members to 50 not including its present
    11. Easy dissolution.
    or past employee members.
    Disadvantages of advantages
    3. P:ohibits any invitation to the public to subscribe the shares in or
    1. Unlimited liability increases of dissolution offirm. debentures of the company.
    2. Lack of harmony among the partners.
    "rMleges and exemptions available for a private Ltd company
    3. Difficulties in expansion and modernization.
    4. Lack of public faith. I. A private limited company can be incorporated with just two
    5. Limited resources. persons. This facilitates easy formation as well as efficiently
    6. Limitation on transfer of share. functioning.
    2. It is not issuing prospectus for collecting its share capital.
    1.3.8 JOINT STOCK COMPANY 3. It is exempted from conducting statutory meeting.
    1.3.8.1. Introduction 4. A private company can work with just two directors.
    The traditional forms of business units, namely sole proprietary 5. Directors are not necessary to file with the Registrar a written
    concerns and partnership firms with their limited financial resources and consent to act as a director.
    managerial capability cannot meet the challenges forced by the need for 6. It can proceed to allot shares without having to want for getting
    massive production and speedy distribution. Joint stock company form of minimum subscription.
    organisation provides the key to this proble. 7. A private company need not be an index of its members.

    _l

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