Essay on An Analysis of Richer Sounds PLC

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An Analysis of Richer Sounds PLC 1.0 A Report on How Richer Sounds Functions 4.1 A Classification of the business according to its ownership, and an explanation of the benefits and constraints of this type of ownership Richer Sounds is part of the Private Sector, which consists of businesses who seek to make a profit. Julian Richer is the sole owner of Richer Sounds, which means he has full control over the business, but the Directors run it. Richer Sounds is a regional unlisted Public Limited Company, which means it is not listed on the Stock Exchange. Julian Richer is owner of all the shares of Richer Sounds, but the official name of the company is still Richer Sounds PLC, even though the shares are not for sale to…show more content…
This includes the company name, location, share capital and their objectives. It also states what the company can and cannot do, which is referred to as the ‘general trading company’, which means they can do anything that is legal. The Articles of Association is what outlines the internal management of the company, which would usually include things like the role of the directors, the rights of the shareholders and the frequency of shareholder meetings, but anything that involves shareholders would not apply to Richer Sounds as it is owned by only one person. They may also encounter the Certificate of Incorporation, which is the birth certificate of Richer Sounds that is issued by the Companies House and states their name, when they were formed and their number. 4.1.3 Why Richer Sounds is an unlisted PLC One of the main reasons why Richer Sounds decided not to be listed was because the reason why companies obtain a Stock Exchange listing is to get additional capital, but they also lose some control of their business to their shareholders. Richer Sounds do not need to obtain extra capital outside the business by selling shares to the public and therefore do not lose any control over the business and also do not have added pressure from shareholders to improve their profits. Also Richer Sounds can benefit from the advantages of being a Limited Company. 4.1.4 Richer Sounds’ Activities Richer Sounds’ main activities are

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