Answer / vinaykumar205

A business (also called a company, enterprise or firm) is a
legally recognized organization designed to provide goods
and/or services to consumers.[1] Businesses are predominant
in capitalist economies, most being privately owned and
formed to earn profit that will increase the wealth of its
owners and grow the business itself. The owners and
operators of a business have as one of their main objectives
the receipt or generation of a financial return in exchange
for work and acceptance of risk. Notable exceptions
includecooperative enterprises and state-owned enterprises.
Businesses can also be formed not-for-profit or bestate-
owned.
The major factors affecting how a business is organized are
usually:
 The size and scope of the business, and its
anticipated management and ownership. Generally a smaller
business is more flexible, while larger businesses, or those
with wider ownership or more formal structures, will usually
tend to be organized as partnerships or (more commonly)
corporations. In addition a business that wishes to raise
money on astock market or to be owned by a wide range of
people will often be required to adopt a specific legal form
to do so.
 The sector and country. Private profit making
businesses are different from government owned bodies. In
some countries, certain businesses are legally obliged to be
organized in certain ways.
 Limited liability. Corporations, limited liability
partnerships, and other specific types of business
organizations protect their owners or shareholders from
business failure by doing business under a separate legal
entity with certain legal protections. In contrast,
unincorporated businesses or persons working on their own
are usually not so protected.
 Tax advantages. Different structures are treated
differently in tax law, and may have advantages for this
reason.
 Disclosure and compliance requirements. Different
business structures may be required to make more or less
information public (or reported to relevant authorities),
and may be bound to comply with different rules and
regulations.
Many businesses are operated through a separate entity such
as a corporation or a partnership (either formed with or
without limited liability). Most legal jurisdictions allow
people to organize such an entity by filing certain charter
documents with the relevant Secretary of State or equivalent
and complying with certain other ongoing obligations. The
relationships and legal rights of shareholders, limited
partners, or members are governed partly by the charter
documents and partly by the law of the jurisdiction where
the entity is organized. Generally speaking, shareholders in
a corporation, limited partners in a limited partnership,
and members in a limited liability company are shielded from
personal liability for the debts and obligations of the
entity, which is legally treated as a separate "person."
This means that unless there is misconduct, the owner's own
possessions are strongly protected in law, if the business
does not succeed.
Where two or more individuals own a business together but
have failed to organize a more specialized form of vehicle,
they will be treated as a general partnership. The terms of
a partnership are partly governed by a partnership agreement
if one is created, and partly by the law of the jurisdiction
where the partnership is located. No paperwork or filing is
necessary to create a partnership, and without an agreement,
the relationships and legal rights of the partners will be
entirely governed by the law of the jurisdiction where the
partnership is located.
A single person who owns and runs a business is commonly
known as a sole proprietor, whether he or she owns it
directly or through a formally organized entity.
A few relevant factors to consider in deciding how to
operate a business include:
1. General partners in a partnership (other than a
limited liability partnership), plus anyone who personally
owns and operates a business without creating a separate
legal entity, are personally liable for the debts and
obligations of the business.
2. Generally, corporations are required to pay tax just
like "real" people. In some tax systems, this can give rise
to so-called double taxation, because first the corporation
pays tax on the profit, and then when the corporation
distributes its profits to its owners, individuals have to
include dividends in their income when they complete their
personal tax returns, at which point a second layer of
income tax is imposed.
3. In most countries, there are laws which treat small
corporations differently than large ones. They may be exempt
from certain legal filing requirements or labor laws, have
simplified procedures in specialized areas, and have
simplified, advantageous, or slightly different tax
treatment.
4. To "go public" (sometimes called IPO) -- which
basically means to allow a part of the business to be owned
by a wider range of investors or the public in general—you
must organize a separate entity, which is usually required
to comply with a tighter set of laws and procedures. Most
public entities are corporations that have sold shares, but
increasingly there are also public LLCs that sell units
(sometimes also called shares), and other more exotic
entities as well (for example, REITs in the USA, Unit Trusts
in the UK). However, you cannot take a general partnership
"public."

1. A group of friends go out to dinner one evening, they agree to share the R1120.00 bill evenly. However three members of the group forgot their wallets and cannot pay. The remaining friends have to pay an extra R84 to settle the bill. How many friends are in the group?

1 Answers  

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Case Study Please read the case given below and answer the questions given at the end. One afternoon in June 1972, Rao, industrial engineer of P.M.A. company, was called to the office of his immediate superior V.R. Naik, the production manager. Naik said, “Rao, I want to discuss a situation in the production department. A lot of people feel that Govindan is not the right man for the Assistant Superintendent’s position. The President and others have decided that I have got to fire Govindan or at least move him out of production. Everyone wants to fire Govindan, but I won’t do it to him. I was talking with Bhadra this morning, and we decided that you might be able to make use of Govindan in your department.” Rao was surprised by both the information, and the proposal. Naik concluded his comments with, “Rao, I am asking you to take Govindan. You can say ‘No’. But then he gets fired. I have told Govindan this. Also, Govindan knows that if he goes with you he will take a pay cut. However, I think you can make use of him both to your own and his satisfaction. You are, anyway, carrying out an in-process quality control, and you might be able to make good use of Govindan in view of his long technical experience of production work. Think it over, and let me know by tomorrow.” Rao thought over the matter. PMA company had been a successful enterprise until March 1972 at which time it suffered a sharp decline of profits : sales had fallen off, and production costs had risen. The President adopted three measures which he hoped would improve the condition. First, by creating an Industrial Engineering Department for establishing work standards on all production operations, to determine which manufacturing costs were out of line and where remedial action should be taken. Rao, 28 years old, who had been with the company for two years in the Purchasing department, was selected. Rao had B.E. and MBA degrees to his credit. What he lacked in his business experience he made up by his eagerness to learn. He was ambitious and liked by his associates. He wanted a transfer from Purchasing to Production for better opportunities for advancement. Secondly, he consulted a Management Consultation firm to make a study of the Production Department. They pointed out that the chain of command was too long from Production Manager through Plant Superintendent through Assistant Superintendent to Foremen. They recommended the elimination of the position of Assistant Superintendent. Thirdly, he engaged an Industrial Psychologist to appraise all the Supervisory Personnel. Govindan had been with the company for 20 years since its founding and during this period had worked on every production operation, and his last 11 years had been in supervisory capacity. His manners were rough and aggressive, he had little formal education. The industrial Psychologist’s report about Govindan contained the following points: (i) Evaluation for the position of Assistant Superintendent : Not good enough. (ii) Capacity for good human relations in supervision : Will have friction frequently. (iii) Need for development counseling: Counseling greatly needed. (iv) General evaluation: Govindan had a good ability profile. He suffers from a sense of inferiority. He does not like the responsibility of making decisions. His supervision is that of Autocratic type. Though he has the ability, as far as his personality make-up is concerned, he is out of place in the present position. Questions: 1. What is the problem in the case? Explain. 2. Explain Govindan’s behavior and work experience vis-à- vis the psychologist’s report. 3. How do you see Naik’s suggestion to Rao? Give reasons. 4. What are Rao’s considerations in taking a decision? What should he do? Explain.

0 Answers   IIPM, MBA,

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what is the diffrence between equity and warrant ?

0 Answers  

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Why did you decide to apply to this business school?

2 Answers   ISBR Business School,

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if you are manager of tisco jamshedpur, how will you motivate the employees to achieve more production

0 Answers  

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What are some examples of sign and symbols of corporate culture?

0 Answers   rgis,

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who are the manager of sbi

2 Answers  

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What is in-transit inventory and how it is calculated, how do you monitor in-transit inventory levels?

0 Answers  

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Why do you wish to go for a management career? What alternative career you are considering and why? Describe your strengths and weaknesses as identified by you? What is the most significant achievement so far?

2 Answers   Fullerton, ICICI, IIM,

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Tell me about a time when you had too many things to do and you were required to prioritize your tasks

0 Answers  

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what is the differentiate between tailormade homemade and readymade

1 Answers   Wipro,

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how can base price be standardize and why?

0 Answers  

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