Quizzes & Puzzles2 mins ago
advice on a new company
linda and susan have been running a partnership business for several years. the major activity of the firm has been to operate a wine bar and restaurant, they wish to extend their activities and interests by acquiring new premises and operating a leisure complex. they have decided to form a private limited company with themselves as the majority shareholders as sole directors of the company.
linda and susan seek advice upon these issues;
1. the new company requires a long term capital injection beyond that which they can subscribe. what may the company use to invite investment and what type of capital may the company raise?
2.the company is keen to minimise expenditure in the early years of trading by keeping fixed long term assets to a minimum. what are the advantages and disadvantages for the company in raising much of its capital by debenture, particularly those secured by a floating charge?
linda and susan seek advice upon these issues;
1. the new company requires a long term capital injection beyond that which they can subscribe. what may the company use to invite investment and what type of capital may the company raise?
2.the company is keen to minimise expenditure in the early years of trading by keeping fixed long term assets to a minimum. what are the advantages and disadvantages for the company in raising much of its capital by debenture, particularly those secured by a floating charge?
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