Definition
Expenses are the costs incurred by a company or individual to generate revenue or maintain business operations. Expenses represent the outflows of economic resources, such as payments for salaries, rent, utilities, supplies, marketing, and other operating costs. Expenses are deducted from revenue on the income statement to calculate net income or profit. Managing expenses effectively is essential for controlling costs and maximizing profitability in business.
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Private Limited Company (Ltd)
A Private Limited Company (Ltd) is a type of company where the ownership is divided into shares held by a small number of shareholders. The liability of shareholders is limited to the amount unpaid on their shares, and the company’s shares cannot be traded publicly on the stock exchange.
Limited Liability Partnership (LLP)
A Limited Liability Partnership (LLP) is a business structure where partners have limited personal liability for the debts and obligations of the partnership. Each partner’s liability is limited to their investment in the LLP, and they are protected from the actions of other partners.