TWOFOUR CASE STUDY

Twofour Case Study

[Name of the Institute]

Twofour Case Study

Task One

Private Limited Company (PLC)

A Private limited company is a type of corporation that proposals limited legal responsibility to the company's shareholders. However, on the other hand, a PLC also known as a private limited company in the one which places firm limitations on its title of shareholders. All these restrictions mainly are presaged out in the corporation's articles of link or even by laws, as well as are destined to avert any aggressive take over an attempt.

The most important ownership constraint are number one the stock holders cannot at all sell or even transfer the shares without proposing these shares towards the rest of the stake holders for buying. Secondly the stock holders cannot at all offer the shares, stocks, or debentures for the common public even on a stock exchange. The third and the most significant constraint is that the number of shareholders cannot at all surpass a fixed number. A limited liability business is a corporation having detached legal traits associated towards its associates. The business that is registered as a Corporation can either own by the government or are also privately owned. The corporations can systematize both for profit as well as nonprofit organisations. Owing a corporation privately that bases on profit, is in the possession of the shareholders that vote for a team that perform functions of the board of directors so as to make and plans for the corporation as well as hire the administrative workforce. A private corporation base for profit can be both privately in custody as well as custody in public.

Following are the main advantages of Private Limited Company PLC:

The owners have Limited liability.

In view of the fact that a corporation is a distinct officially authorized unit, proprietors of the business are only indebted to the degree of concentration related to the maters of the corporation.

The creditors that are part of the business corporation can attain the assets of the business, whereas they are not allowed to sell the personal property of the other stake holders.

Easiness on selling as well as on transfer

If the corporation stock is traded publicly, the owners along with the shareholders can sell their interest of the corporation through any of the stockbrokers and then eventually by any other shares of differ corporations (Jeff, Page 100-164).

Similarly f stocks are not traded publicly; the certificate of stock can easily transfer or even allocate to some other owner. This is done through carrying out a legal document of transfer of the shares of that corporation.

The power of succession of the corporation permits to benefit from an incessant continuation.

Any type of misfortune or even passing away of any of the associate will not liquefy the corporation as it is in the situation of a sole proprietorship.

The organisation will remain as a distinct and isolated authorized entity and stocks of that member will transfer to some other owner.

In case of expanding the business there is no difficulty as funds is raised quite easily.

Smart Sourcing

Smart sourcing is just the opposite of Outsourcing. The term smart sourcing refers to ...