logo

Finance and Legal Requirements for Metro Products Ltd

   

Added on  2020-01-16

9 Pages3140 Words76 Views
 | 
 | 
 | 
MANAGING FINANCIALRESOURCES1
Finance and Legal Requirements for Metro Products Ltd_1

TABLE OF CONTENTSIntroduction..........................................................................................................................................3TASK 1.................................................................................................................................................31.1.....................................................................................................................................................3A) Explain the difference between the legal requirements between a limited company and a non-limited company and state the requirements for Metro Products for the end of the financial year..3B) Analyse the difference between management accounts and financial accounts.........................41.2 Explain the Cash flow, Profit and Loss account, Retained Earnings account and the Balance sheet and state the importance for Metro Products Ltd....................................................................51.3.....................................................................................................................................................6A) Identify the Metro Products Ltd’s various potential stakeholders...............................................6B) Analyse their relative interests, influence and options available to Metro Products Ltd in managing the interest of the stakeholders.........................................................................................7Conclusion............................................................................................................................................8References............................................................................................................................................92
Finance and Legal Requirements for Metro Products Ltd_2

INTRODUCTIONFinance is act like a magic wand to change the condition of an entity from poor to the richstatus of the business. Metro products Ltd has been selected for the project report in order toascertain the importance of financial resources and their overall management for the firm like MetroProducts Ltd. This project is all about defining legal business requirements of limited and privatecompany with the difference between management accounting and financial accounting.TASK 11.1 A) Explain the difference between the legal requirements between a limited company and a non-limited company and state the requirements for Metro Products for the end of the financial yearLegal definition- The nature of business of private company is described in the laws andlegislations which states that a company which is not public company are regarded as privatecompany. The public company on other hand refers to an entity owned by owner with some share ofgovernment ho regulate the performance of the business. The suffix added after the name of thebusiness reflects the overall status of limited or non limited company. The violation of the rules oflimited company the suffix will be removed after the name of the business.Listing requirements- the additional burden imposed on a limited company is to list their companyin the recognised stock exchange of United Kingdom. The limited company is able to meet all thelegal requirements of listing their business in the stock exchange (Ehrhardt and Brigham, 2016).The benefit of listing their firm into the recognised stock exchange of UK that is London stockexchange is to get adequate capital fund to accomplish all their requirements of the business. UKentities use the phrase Public limited companies whose acronym is PLC in order to conveyinvestors about their business status to invest in the business. On the other hand, private entity isobligatory in order to list their business in the recognised stock exchange. There is no burden onprivate entity to list as they can list in the stock exchange according to choice in order to addvolatility in their business.Authorised share capital for companies- The paid up capital in order to start the business as apublic company is mentioned in the act which needs to be followed by an entity. The violation ofthis principle will restrict n entity to be called as pubic limited as they will not grant all the rightsand duties enjoyed by limited company. The minimum paid up capital decided by UK authority forpublic companies is £50,000. There is no kind of obligation for private company for accomplishingthe minimum authorised capital requirements in order to start their business.3
Finance and Legal Requirements for Metro Products Ltd_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Financial Analysis of Metro Products Ltd.
|10
|3417
|117

Managing Resources for Sustainable Development
|10
|3260
|161

Financial Accounting & Management Analysis
|11
|3245
|171

Difference between PLC and LTD
|10
|1346
|153

Business Concepts and Strategies
|9
|2443
|237

Business Environment - Assignment
|10
|2472
|232