Financial Analysis of Metro Products Ltd.
Added on 2020-01-16
10 Pages3417 Words117 Views
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MANAGING FINANCIALRESOURCES
Table of ContentsIntroduction................................................................................................................................3Task 1.........................................................................................................................................31.1...........................................................................................................................................3a) Explain the difference between the legal requirements between a limited company and anon-limited company and state the requirements for Metro Products for the end of thefinancial year (500)................................................................................................................3b) Analyse the difference between management accounts and financial accounts (300)......41.2 Explain the Cash flow, Profit and Loss account, Retained Earnings account and theBalance sheet and state the importance for Metro Products Ltd (500)..................................51.3 a) Identify the Metro Products Ltd’s various potential stakeholders...............................6b) Analyse their relative interests and influence, and options available to Metro ProductsLtd in managing the interest of the stakeholders...................................................................8Conclusion..................................................................................................................................9References................................................................................................................................10
INTRODUCTIONFinance is regarded as important resource in upgrading the performance of an entitywhich needs to be managed. This report is based on defining legal requirements of limited ornon-limited companies along with difference between management and financial accounting.It includes different financial statements along with various stakeholders’ needs andexpectations.TASK 11.1 a) Explain the difference between the legal requirements between a limited company and anon-limited company and state the requirements for Metro Products for the end of thefinancial year (500)Meaning- A limited companies is that firm which is registered under the legal law asit is registered within the companies act and on the other hand, non limited companiesthat is private company which is registered entity solely owned and controlled bysingle individual.Minimum person- The person requirement is mentioned legally in the legal rules andregulations which need to be comply in order to open limited or private limitedenterprise (DaDalt and Coughlin, 2016). The legal requirement of minimum person inpublic limited organisation is 7 and unlimited members. In the private limited firmminimum 2 and maximum 50 members can incorporate this private entity.Paid up capital- An entity are required to meet the legal paid up of capitalrequirement in order to add the word limited after the name of the business and toenjoy all the rights of limited company. The paid capital of limited cum public limitedcompany is 500000 whereas in private company it is of 100000.Directors- The administration of the business will be done by the managing directorsof the company who will handle all business operations of an entity. The reliability ofthe legal actions will be maintained by the directors of the company (Evans andPorter, 2010). It is mentioned in the legal act to have minimum 3 directors to start thelimited company and at the same time minimum 2 directors are required to write upthe memorandum of association.Statutory meeting- The annual general meeting organised by an entity is to conveyall important rules and the regulations currently framed by an entity for the bettermentof their business. There is compulsion on limited company to conduct statutory
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