Sample Essay

A public or private limited company has limited liability which means that the company owners have limited liability and do not have to provide any additional funds in case of dissolution of the company. The ownership structure of the company will be a limited liability company with public ownership in the form of shares.

The capital shall be divided into shares which will be owned by the founders of the company and shares issued to the general public and if the need arises for additional capital the company will rely on debt financing from banks and financial institutions or by issuing bonds to the general public. As the company will be newly formed in Russia it may have difficulties in motivating the general public to buy shares of the company but it can be overcome by implying the reputed and well established image of the parent company in electrical appliances. The parent company can also provide any additional funds required in the later stages of operations.

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