Some advantages of a private limited company are limited liability, ease of use and that it is a legal entity; disadvantages include the required paperwork, limited growth and the expenses involved. Limited companies are small businesses usually comprised of family or close friends. These companies may issue stock, but do not trade on the public exchange.Continue Reading
If a person is an independent contractor or is interested in starting a small business, he or she may choose to start up a limited partnership. Advantages and disadvantages should all be taken into consideration prior to making the final decision.
One great benefit of a limited partnership is the fact that personal liability is limited to the company's owners. This means that if the company experiences some type of financial difficulty due to normal business activity, then the shareholder's personal assets are not at risk. It is also fairly easy to manage. Management on the back end can be as simple as submitting monthly spreadsheets to an accountant. Since the company is a legal entity, it has more credibility.
Organizational skills are important, since there are forms and paperwork required that should be submitted on a regular basis. As a limited partnership, company growth is limited because maximum shareholders top out at 50. Also, some may find setting up the company is expensive, since the costs for a limited partnership often exceed those for a sole trader or partnership.Learn more about Corporations
The Gramercy Property Trust is a company that operates in the global commercial real estate industry as both an asset manager and an investment entity. Gramercy Property Trust provides management services for a variety of real estate types, such as industrial locations and office properties. The company also acquires real estate directly from owners and developers of the property with a stated aim of filling their portfolio with properties that produce income and draw high-quality tenants.Full Answer >
A trust company is a legal entity owned by a bank or other financial institution, law firm or independent partnership that manages trusts, trust funds and estates for individuals, businesses and other entities, explains Investopedia. A trust company acts in a fiduciary capacity as trustees for their clients.Full Answer >
Factors such as the company's expenses and its desired return on investment are taken into account when Bank of America sets its prime rate. The bank also considers broader macroeconomic conditions when setting its prime rate.Full Answer >
Some of the factors that lead to Kmart closing a store include the need to cut expenses, redistribute assets and make changes to fit the company's new business model, as of 2015. The company primarily closes under-performing stores, but may also close branches during lucrative real estate deals.Full Answer >