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Tower Brand said Hey, great blog, but I don't understand how to add your site in my rss reader. Can you Help me please? and anyone want. PakistanEducation provides terney.info Part 1 Introduction to Business Notes PDF. to BusinessNotes that have solutions to all the examples of your book?. Topic 1 IMPORTANT DEFINITIONS 1. SCOPE OF BUSINESS INTRODUCTION : Business is a broader term and it covers all activities done.
In secondstep a legal advisor is hired by the promoters. The advisor helps them in preparing legal documentslike article andmemorandumof association, prospectus or statement in its lieu etc.
He further deals with the office of the registrar for company registration. Important documents in this regard are i. Memorandum of Association ii. Article of Association iii. Prospectus of the company 4. After completion of all necessary documents an application is submitted to the registrar office in orderto get registrationof the company.
A registration fee is also required to be paid along-with application form. The fee amount is not fixed and always depends upon the share capital of the company.
Greater the amount of capital higher will be the registration fee. Duringthe processof registrationthe promoterstrytogetshare certificates of their company to be printed. These certificates are issued to the shareholders as a token of their ownership in the company.
Aftera thoroughexaminationandanalysis a registration certificate is issued by the registrar of the company, after the issuance of which the company gets a legal status. We can also say that before getting a registration certificate no any company can start its business operation. It isalso importanttonote that a private limitedcompanycanimmediately start its business affairs after getting the registration certificate, however a public limited company cannot commence its operation at this stage unless it gets another certificate known as commencement certificate.
Only for Public Limited Companies On receipt of registration certificate the company issues prospectus to general public through advertisement. The prospectus helps the company in raising the desired capital amount from the public.
The commencement certificate allows the company to begin its actual operations. Prospectusis required to be circulated through advertisement bypubliclimitedcompanies. Without its publication a company is unable to gather its desired share capital hence, cannot get the commencement certificate to start its business affairs.
It isimportantto note that prospectusisnotcompulsoryfora private limitedcompanyas it does not raise its capital from general public. Similarly, public limited companies arranging their share capital privately are not required to publish their prospectus. A legally valid prospectus must fulfill the following conditions. Invites general public to download shares. Its copy must be submitted to registrar office before its publication. It must be properly dated.
It must be signed by all or at-least two directors of the company. Following are the salient features of a prospectus. It contains the content of memorandum of association ii. It contains the total number of shares and promoters of the company.
Number of redeemable shares. Qualifications shares of directors v. The name of underwriters of shares. Allotment, installments and forfeiture of shares. Preliminary Expenses ix. Name and address of auditors. Minimum subscription of shares xii. Nature of debentures and their underwriters xiii. This statement should include same information as of prospectus and is required to be submitted at-least three days prior to the issuance of shares or bonds.
Socialismisalsotermedasbusiness under public ownership. Under socialism production of goods and servicesare organized in order to fulfill human needs and not to earn profits. Socialist economies are state ownedwhere all factorsof productionsare owned,controlledandmanagedby state government. Socialist states are not profit oriented but these are welfare states.
Hence socialism encourages state control, dependence, spending and bureaucracy while discourages private ownership, profit and individual responsibilities. All factors of production related to goods and services are controlled by government.
Heavy industries,utilitiesservices water,powerandgasetc. Government,asperstate requirementsutilize factors of production in the manner it finds best. Socialismisbasedonpublicwelfare,therefore,socialisteconomiesare interest free. Resources and wealthare supposedtobe distributed on the basis of equality in general public and interest is the factor that results in wealth concentration in hands of some people, hence it is discouraged in socialism.
The concept of socialism,atlarge, eliminates differences of rich and poor from the society. Mostly goods and services are produced or manufactured on the basis of analysis about their number of consumers. We can say that in a socialist economy, almost all goods and services are within the range of everyone.
Inasocialisteconomyitisthe governmentthatdecidesaboutprices of commodities, rates of services and even salaries of employees. Beinga welfare state, a socialist economy guarantees compulsory employment to every citizen of state. All men and women get employment in state run organizations based on their capabilities, skillsandknowledge. Hence we cansaythat ina complete socialisteconomy,un-employment does not exist at all.
As businesses are run by government for welfare of its citizens, socialist economies themselves become service oriented. Government offers services and goods to consumers at moderate and affordable prices. Same is the reason, that government sometimes runs few of its organizations even at losses but does not windup such businesses in public interest.
A socialist state is also termed as welfare state. Factors of production, resources of country and other business affairs are utilized for general public welfare and not to earn profits. Government offers,goodstoconsumersat moderate andaffordable prices. Further,service providingsectorslike education, utilities, hospitals, rail and air ways etc. Due to interest factor wealth and other resources start going into the hands of few people of the state.
Further interest is one of the major causes of inflation in the society. A socialist economic system is based on the concept of public welfare through equal distribution of wealth and resources, hence it completely discourages interest. Thisfactoris beneficial as all goods and services are within the range of everyone, life style people isalmostsame,chancesof robberyandtheftare minimizedanddiscriminating factor is eliminated from the society.
Due to complete governmentcontrol overthe economy,pricesof goodsandservicesremainstable. Thus profitmakingisnotthe objective of businessesinasocialist state the government fixes prices in favor of consumers by which they download commodities and avail services at low rates. Factors of production and resources of a socialist state are used, controlled and managed by the governmentwhich doesnotuse these resourcesforprofitmaking.
Allocation of all the resources in productive mannerisbasedongovernmentanalysisand research. Same is the reason that wastage or misuse is supposed to be at its minimum level in a socialist economy.
Beinga welfare state,asocialisteconomyguarantees compulsory employment to every its citizen. All menandwomengetemploymentinstate runorganizationsbasedontheircapabilities,skills and knowledge. Hence we cansaythat in a complete socialisteconomy, un-employment does not exist at all. Everyindividualmusthave righttouse hispersonal resourcesasperhischoice. Private ownership is basedon profitandrevenue generation. In a socialist state concept of private ownership does-not exist.
All resources are owned by government. Every individual has to surrender his resources if any to government and has no right to use it as per his choice. Consumers in a socialist state are not supposed to demand but they have to accept. Production of goodsand servicesare controlled by government. Further it is the government that decides about prices, rates, standards and qualities of goods and services. Not any individual or organization is allowed to enter in any sort of business.
Same is the reasons that consumers do-not have much choice of products or services. Due to complete control of government over all business activities, people get fewer professional choices.
As there is no private sector, people can only apply for jobs in industries run by government. Itisthe government that decides about matters like job assignments, salaries, fringe benefits,promotionsandincrementsetc.
Therefore employees, mostly, have no right to negotiate on their salaries and other matters. It isthe responsibilityof state to provide employment to every citizen. Government usually has its own criteria of salary fixation, promotion and increment. Usually increments and promotions are given on seniority basis instead of performance or worth abilities. The factors bring morale of employeesatverylowside. Onthe otherhand, compulsory employment and permanent nature of job usually decrease job interest and increase factors like absenteeism and late comings in employees.
Management, in a socialist economy is based on rule and not on objective. Every matter goes throughprocessdesignedbythe government. Further top management of organizations is directly transferred or appointed by government hence sometimes is un-experienced about organization matters.
It isusuallyobservedthatmostlygovernmentemployeestake least interest in betterment of corporation same is the reason that several government owned organizations show losses of millions of rupees every year. Socialist economies lead to increase corruption in their country. Most government employees indulge in corruption, inefficiency and fudged accounts.
Absence of factorslike private ownership,competition,profitmakingandinterest of employees to- wards their job assignments slow down the economic growth of the country. Organizations in socialist economies hardly move towards updating themselves with new technologies and other changes.
In a capitalistic economy, businesses are run under private owner with the incentive of private gains. There isno or verylittle involvementof state governmentinbusinessaffairs,usuallyup-tothe extent of policy making. Factors of production and resources remain under private ownership. Profit earning is the key factor of economical growth in a capitalist economy. More profits lead to more investment which ultimately results in economic growth of the country.
In a capitalisteconomyfactorsof productionsare owned,managedandcontrolledbyprivate sector. Individualsororganizations are free to run their businesses and use their resources in the manner they like. Government does not interfere in any legal use of resources like land, capital or labor. Similarly, the fourth factor i. Profitisthe mainmotivating factorof a capitalisteconomy.
Businessesunderprivate ownership are establishedandrunforprofits. Everybusinessman,afterpayingall taxes,dutiesandliabilitiesisfree to use hisprofitinthe mannerhe likes.
We can say that, entrepreneurs are free to use their profits either for their personal use, savings or reinvesting in their businesses. Interestisone of the strong pillarsof capitalism. Itisreferredasreturnoninvestmentanownergets on his capital. Investor is free to use his capital in any sector to get maximum rate of return. The return on investment can be, again, freely use by the owner. Due to minimum government control and freedom of private sector capitalist economy generates classes of rich and poor.
More capital investment brings more return, good quality products and servicesgenerate more profit,experiencedandskilledemployees get more salaries and benefits as compared to in-experienced and unskilled staff. All such factors divide the community in upper, middle and lower classes. In a capitalist economy, variety of products and services are available for consumers. Hence, consumers are not only free to choose any of the available products or services but they can also negotiate ontheirprices.
Further, consumers also have right either to accept or reject any product on basis of its price, quality or standards. A capitalist economy provides open opportunities of professions to the whole community. Employers are free in selection for suitable candidates.
Similarly employees and workers can also searchjobsof theirowninterest. Furtheremployeesare alsofree to negotiate on their salaries and other fringe benefits with their employers. Profitisthe basic objective of privateownership. Businessmen invest more and work hard in order to earnmore profits. Thisfactorresultsinbusiness expansion and growth which is not only fruitful for businessmen but also creates employment opportunities and faster the economic growth as well.
In capitalisteconomy, consumers have lot of choices of goods and services. They have freedom to choose amongthe available goods and services in the market. They can negotiate on price, quality and standard of products and services and have right to reject or accept any product or service on such grounds.
Insimple wordswe can say that ina capitalisteconomyconsumeristhe king. Same is the reasonthat businesseswork hard for maintain good quality and standard of their products and services in order to satisfy their consumers 3.
Capitalism also gives individuals, freedom to choose professions of their own interest. They can applyfor any job in any industry or sector they like, further have right to negotiate on salaries and otherbenefitswiththeiremployers. It is obvious that employees work whole heartedly if they get jobs of their interest which ultimately results in business and so economic growth. Similarly, employers also have right to search and select candidates according to their requirements. Capitalismprovidesequalopportunitiestoall businessmen.
Businessesthatworkhard and maintain good standards will earn more profits. This makes the business environment competitive and consumers get better quality products at good price levels. Producers in order to satisfy their customers and get more market share keep themselves busy in introducing new products in the market which needs a lot of research and analysis.
Same is the reason that science and technology is used in the best possible way in a capitalist economy. In a capitalisteconomy,privateownershipandprofitabilityincreases interest of individuals in their businesses. Further investors try to invest their capital as they have chance to get return on their investments. Similarlyemployeesandworkersworkwithfull devotion as their professional growth isdependentupontheirperformance. Due tosuchfactors capitalisteconomies bring fast economic growth in country.
Due to minimum government control and freedom of private sector capitalist economy generates classesof rich andpoor. Same factor creates class conflicts of rich and poor. Rich people can afford luxurious goodsandservicesbutpoor cannot.
Same is the reason that complexity and jealousy are common elements in a capitalistic society. Interestisone of the strong pillars of capitalism. Due to interest factor wealth and other resources start goingintothe handsof fewpeople of the state. Further interest is one of the major causes of inflationinthe society.
Due tointerestfactor rich become richer and poor become poorer. Business activities are always full of risk.
The risks may be in form of loss, fire, theft, natural calamities,competitionetc. Individual orbusinessorganizationsare notstrongenoughtoabsorb big risksand losses. Asaresultof whichsometimesentrepreneurshave towinduptheirbusinesses due to losses and other risks. In a capitalisteconomy,individualsare free to use their resources.
Same is the reason that chances of misuse increase inacapitalism. People investonlyinthose sectorsthatprovide maximum profits and returns. Further funds and resources are used freely in order to get maximum customers e.
Businesses in capitalist economy do not care about social ethics and norms. In order to generate profit unethical business practices are usually observed in capitalist economy like casinos and lotteries etc. Mixed economy, also termed as dual economy, is a moderate system consisting characteristics of two other economic systems viz.
Pure capitalismhasitsdemeritslikecomplete holdof private sectoroverfactors of production, thirst of maximizing profits and un-controllable prices etc. Socialism, on other hand gives no choices to consumersandemployees,observesslow economic growth and increases chances of corruption in the country. It is an economic systemthatcontainsadvantageouscharacteristicsof bothcapitalismandsocialismwhile ignoresall such factors thatcan be harmful toeconomy.
Due to itsmoderate nature,manycountrieshave implemented mixed economy as their economic system. Pakistan is one of the countries where mixed economic system has been followed. Ownership of business resources, in a mixed economy, is held in both sectors.
These industries usually include infrastructure andutilitiesserviceslike water,gasandpoweretc. Due to complete control oversuch industries,governmentdirectlycontrolsprices or rates of such products and services to keep them within the range of general public. Private sector has right to enter in any permissible business under the prime objective of profit.
Further individuals are also allowed to invest their capital in any sectorin orderto getmaximumreturn. Justlike capitalism, businesses can decide the prices of theirproductsand services,however inorder to keep prices stable, government can also enter inany businessalongwith private sector. Forexample inPakistan,UtilityStoresare government owned departmental stores that offer products at low prices than market.
Similarly there are several private organizationsproducingsteel productsin our country but Pakistan Steel Mills a government owned organization is also working in Pakistan in steel sector. In a mixedeconomicsystem,publicsectororganizationswork for welfare of general public and not to earn profit.
Same is the reason that government runs some of its enterprises even at loss but does not wind them up for benefits of general public. Pakistan International Airlines, Pakistan Railways and Pakistan Steel Mills are the biggest examples of such enterprises in our country. On other hand, private sector of mixed economic system works with the prime objective of maximizing its profit.
Good quality products and services observe more sales hence generate more profit for the business. In orderto deal withissueslikegoodqualityandstable pricesof productsandservicesgovernment, inmixedeconomy system, also keeps a check and balance in business affairs of private sector and several regulatoryauthoritiesworktoachieve thisobjective.
Defining and implementing policies and rules about standards and quality of products and services is the prime objective of suchorganizations. Furthergovernmenthasrightto take legal actionto businesses that do not follow government policies. Like socialism, mixed economies are also based on long run. Usually countries make their policies and regulations in order to achieve long run objectives. The long run planning may be for ten to twentyyearsbutgovernment,usuallyineverycountry,iselectedforfiveyears,therefore five years plan is common in this regard.
Having involvement of private sector in business, consumers in mixed economy get variety of products and services available in the market. Further, they have right to negotiate on prices and have rightto accept or rejectany productor service due toitsprice,qualityorstandards. The added advantage ina mixedeconomyisthatconsumer can also launch complaints if any about products and services to government authorities for legal action. Mixedeconomy does not guarantee confirm employment however various fields and professions are available inbothpublicandprivate sectorswhere people are free toapply.
Publicsectorsjobare usually of permanent nature where salary package, bonus, increment and other benefits are decided and announced by government. Further promotions in government owned organizations are generally given on seniority basis.
On other hand, people may search jobs in private sector as well where they have freedom to negotiate their salaries, bonuses and other benefits. Both the systems are different from each other in many ways. Major differences are as follows: Factors of production and other resources are privately owned.
Government interference is up-to the extent of policy making. Businessesare run to provide benefitstogeneral publicand not to earn profit.
Profit is the prime objective of capitalistic economy. Individuals and private organizations do businesses in order to get maximum profits. As all factors are under state control, hence used for public welfare and not for wealth concentration. Interest is one of the strong pillars of capitalism.
It is the return on investmentof capital. Incapitalism, individuals are allowed to invest their capital in any sector from where they can get maximum return Interest 4. Government Control In socialism factors of production, resources, distribution and all other business affairs are completely controlledandmanagedbygovernment.
What, why, when and how to produce? There is no government interference in business affairs. Factors of production, resources and businessaffairsare completely under control of private sector. Therefore profits, market trends and consumerdemandsdecide the production of goods and services. Consumer Choices Consumers in a socialist economy are not supposed to demand but they have to accept.
It is the government that decidesabout the prices, standards and qualitiesof productsandservices. Same is the reason that consumers get fewer choices of products and services.
In capitalist economy, consumers have lot of choices of goods and services. They have freedom to choose among available goods and services in the market.
They can negotiate on price, quality and standard of products and services and also have right to reject or accept any product or service on such grounds. Employment All businesses are run by government. Salary packages, benefits, promotion and incrementcriteriais decided by the governments. Employeeshave notmuch choice of professions. Capitalism gives individuals, freedom to choose profession of their own interest.
They can apply for anyjob inany industryorsector they like, further have right to negotiate on salaries and other benefits with their employers. Competition In socialism there does not exist any Capitalism provides equal We can also say that government enjoys monopoly in a socialist state.
Right to produce and right to download make a capitalist economy competitive. We can say that almostall goods and services are within the range of everyone. Similarly, salary packages of workers at same level in different organizations are equal. More capital investment brings more return,goodquality products and services generate more profit, skilled employees paid more than un-skilled staff.
From businesscombination we mean combining of two or more business organizations to form a new business. Such combinations are done due to various reasons, some of them are given below: Organizations want to expand their business resources 2. Organizations want to expand their market 3. National level organizations want to become multi-national organizations 4. Organizationswith small resources or less capabilities want to have shelter of big organizations in order for their survival.
Business combination may be of different kinds some of them are given below. Merger 2. Amalgamation 3. Holding companies 4. Subsidiary companies 5. Trust 6. Pool 7.
Cartel 8. Syndicates 9. Licensing 1. Merger refers to combination where a firm takes over one or more independent firms in such a manner that firms taken over lose their separate identity. This can easily be understandable from following: This type of combination takes place where two or more companies combine with each other in such a manner that all of them loose their entities and form another company with a new name.
Amalgamation can be represented as follows: Amalgamation generally takes place when all the companies are almost equally popular and having equal share in the market. The concept refers to combination under which all companies involved retain their separate identities. However, the firm that initiates the process is known as holding company.
The process can be explained by the following equation: These are the companies owned by the holding company, but enjoy their separate entity. The position can be shown in equation as under: After A acquiresthe majorityof sharesof B and C they become the subsidiary company of A.
In this equation both the subsidiary Trust are developed between different companies or organizations in such a manner that none of themloose its existence or entity. It is created by an agreement among competitive companies in orderto kill or atleastminimize competitionbetweenthem. Several methods can be used to create a trust between companies for example trust can be developed by fixing prices on products or services.
Pool comes into existence in order to prevent those companies from competition dealing in identical goods or services. Following criteria can be used in order to make such agreements. Cartelsare establishedbetweenlarge industries for example producers of diamonds, zinc, copper, tin and rubber.
Amount of production is fixed along with prices and distribution areas as well. Syndicatescanbe establishedbetween two or more individuals or organizations in order to gather or enhance theirfinancial resources for meeting a certain project. Syndicates are most common in banking sector where some times huge finances are required for a certain project that cannot be arranged by a single bank therefore two or more banks join hands together in order to fulfill financial resources for that their particular project.
Licensingisagreementbetween two companies One principal while the other manufacturing. In licensing, principal company allows the manufacturing companies to manufacture or sell its products. In fact principal company issues a license of manufacturing or selling its products to another company. In return manufacturing company pays a certain agreed amount in the form of Royalty to the principal company. When organizations are suffering heavy organizational losses they need to make a combination either in the form of merger or becoming a subsidiary company.
Whenorganizations want to enhance their financial resources, want to explore more markets and try to capture more market share they decide to combine their resources. In such types of combination amalgamation is most common. Some of the large enterprises make some business agreements to reduce competition.
Pools and trusts are common examples for these type of combinations. There are certain conditions when a project cannot be completed by a single organization due to lack of resources. In such conditions two or more organizations may combine together in order to complete the project.
Syndicates and Joint Ventures are common examples of such types of combinations. Merger, amalgamation and Franchises are examples in such cases. The term marketing can be defined as follows: Marketing is a very important aspect in business since it contributes greatly to the success of the organization. As additional affordability checks are required when processing joint loan applications, unfortunately, an instant decision cannot be given.
On average the processing time for a joint loan application is five working days from receipt of the required documentation. Employer sponsorship Studying with The Open University can boost your employability. They also value the skills that students learn and can apply in the workplace. More than one in ten OU students are sponsored by their employer, and over 30, employers have used the OU to develop staff so far.
Your employer just needs to complete a simple form to confirm how much they will be paying and we will invoice them. Mixed payments We know that sometimes you may want to combine payment options. The fees and funding information provided here is valid for modules starting before 31 July Tests of significance: Introduction, Tests for means and proportions for single and two populations.
Syed Hassan Mirza.
Business Mathematic for Management and Finance. Business Mathematics 3. Richard Lacava. Business Statistics. Prentice Hall Inc. Boston USA. Frank S.
Introduction to Computer: History of computer, Parts of a computer. Compiler, Interpreter and assembler. Common terminology's used in computer field. The need of data processing in business organizations. Communication Channels: Analog and Digital Transmission. Recommended Books. Latest Editions 1. Srivastava, C. Norton, P. Microsoft Office Techmedia, New Delhi Nuqoosh Software Learner. Robert A.