Mastergp
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This is a relatively large business outfits developed by entrepreneurs. For such companies to be recognized, it has to be incorporated and registered as a legal corporate entity. In Nigeria for instance, such company has to be registered by corporate. Affair commission and the enable act is the companies and Allied matters Act.
The incorporation of companies gives it the right to exist with separate assets and liabilities different from the owners. This means that there is a separate existence for both the companies and the owners and the owners can only loose their invested fund in case of liquidation of the company unlike partnership or sole proprietorship where in the event of bankruptcy, the owners personal belongings will be sold to clear the liabilities owned.
As a large organization, it enjoys more credibility and can easily access fund from the financial institution because they have the collateral for loan and can also get huge contract from reputable corporate bodies including government.
We must add here that companies can either be private or public limited companies.
Private companies have minimum of two member and a maximum of fifty while public companies have yo upper limit but with a minimum of seven members.
The incorporation of companies gives it the right to exist with separate assets and liabilities different from the owners. This means that there is a separate existence for both the companies and the owners and the owners can only loose their invested fund in case of liquidation of the company unlike partnership or sole proprietorship where in the event of bankruptcy, the owners personal belongings will be sold to clear the liabilities owned.
As a large organization, it enjoys more credibility and can easily access fund from the financial institution because they have the collateral for loan and can also get huge contract from reputable corporate bodies including government.
We must add here that companies can either be private or public limited companies.
Private companies have minimum of two member and a maximum of fifty while public companies have yo upper limit but with a minimum of seven members.
