Limited Companies II

Commerce SSS2 First Term

WEEK  8

Limited Companies II

Performance Objectives

The student should be able to:

     1. State the advantage and disadvantages of limited companies.

     2. Differentiate between loan and overdraft.

     3. Define shares.

Content

Sources of capital  for  limited companies

1. Shares: A share can be defined as the individual portion of the company's capital owned by shareholders. It is the interest which a shareholder has in a company. In other words, a share is a unit of capital measured by a sum of money. The Company Act defines a share as The interest in a company's share capital of a member who is entitled to share in the income of such company." In…