Different objective of public enterprises

Different objective of public enterprises

Public enterprises or company established by government in the interest of social. They are not for profit making but they are formed for social economical area and balanced the economic growth for different sector. We divide these objects into three parts : -

objective of public enterprises

Economic objective –

ü  Government always prefer to make condition for fast economic growth and for this, government provide the basic things like food, education, better working conditions and better housing.

ü  There are lots of sectors which require a lot of money and only government can take these types of steps and also there are no fix rates of interest.

ü  It is the responsibility of the government to take such steps which decrease the unbalance of different area like city – town – village etc.

ü  It is the responsibility of the government to provide goods and services on a low rate with a good surplus. These types of business also require lot of investment.   

ü  Unemployment is always a big issue for government. For this, these enterprises generated jobs but also bear high risk, cover the unbalance area of economic growth and different locations.

Political objective –

ü  Do lot of activity for national defense like army, oil sector or so on.

ü  Other national important issue.

Social objective –

ü  Government always works for removal of economic & social disparities and also for equal distribution of income level for all.

ü   Always help the weak sector because they are job oriented and also related with balance the regional difference.

ü  Always work to stop monopoly.

Difference between public and private enterprises

Difference between public and private enterprises

Owner ship – Public sector / company owned by government capital but a private company have one or more member to invest.

Management – Public Company full manage by government policy with in frame work. Some- time this situation become rigid, depressed by lot of rules and have a little scope. But a private company managed by owner or investor & has a wide area to work.

public and private enterprises

Objective – Public sector has a social objective & always works for the society benefit or social economic area. But a private company always formed for economic goal or profit.

Capital – Public company formed fully by government or at least 51% stake in any company. In private, it’s fully financed by its investor or a majority of group.

Flexibility – A public company always follow the rules and regulation which is lead down by government so there are less flexibility but in private company, they are established for economic goals or profit and they are more flexibility for future operation.   

                                                                                                        

What do know about Public Sectors

What do know about Public Sectors?

Every Government has lot of responsibility towards the public or society. Every Government takes lot of steps for public interest and establishes enterprises or working body which work for public interest and balance the economic. Profit is not the main objective of these types of company. It is fully own and operated by government like railways, posts office, LIC, transports and electric supply. 

What do know about Public Sectors

Characteristic of Public Sector

ü Government ownership – These companies are fully owned by government or have at least 51% stake in company. Public allow to invest of there is a joint sector.

ü Not for economic gain – These are not formed for profit making but they do production and distribution of goods and service for public interest at a low price. Also they work for increasing job opportunity, balance the economic growth in different sectors.

ü Liberal attitude – These companies does not have any commercial objective. These are established for certain vital objective of society. Management has also adopts the liberal attitude towards the different interested group.

ü Lack of decision making – These company formed by government with lot of rules and regulation. So there are lots of points which control the functioning due to this lack of decision making, low level of initiatives and also fear to face etc.

Types of company as per member liability

Types of company as per member liability

Unlimited liability – In these types of company, the members or partners of company have a unlimited liability. If an unlimited company does not have enough for all payment, it will be shift to share holders. These types of company are rare in current time frame.

 

Limited by Guarantee – In these types of company, partners are limited by guarantee. Amount will be mention in Memorandum. Amount will be pay when they winding up the company. These types of company not formed for economic gain or profit, but they are generally for art, culture, charity, science or sports.

company as per member liability

Limited by share – These types of company normally registered with an amount which is mention in its MOA (Memorandum of Association). This investment or capital divided a numbers of shares like one rupee, ten rupee or so on. If any person wants to become a member, firstly he buys some share & his name also write-down in register after that he become a member of company.

Government companies – If Government have at least 51% share of any company, we call it a Government company. May be this ratio held by central Government, state Government or other local bodies.  

Different types of company

Different types of company

Business enterprises or organization is defines as a unit of people or social group constructed for some special economic goals. The main activity of an organization is goal oriented and they have a clear road map & coordination in respect of duties and responsibilities. These human beings fully coordinated in respect to their assign activity.

Different types of company

Registered company –

                                            Any company, which is formed under a law & have a registration under company act or under other company low. These law passed by the Government of India.

Statutory company – 

                                    A company which is formed under a special act of legislature, we normally call them as statutory company like – Reserve Bank of India (RBI), State Bank of India (SBI), NHAI etc.

Chartered company – 

                                 This is the starting model of the company, where a Queen or King grante these types of company. Greater Britain king normally formed lot of company like British East India Company or Bank of England etc.

Foreign company – 

                              A company, which is established at outside the India but currently managing their business operation in India also. These known as a foreign company or multi-national company.

Different types of Duties of Partners

Different types of Duties of Partners

Partnership is a mutual relationship between two persons for some profit making activity. Individual, we call them partners and jointly, we call them partnership. A partnership is a result of an agreement between the social unites or human being for some economic goals. Any partnership requires two or more persons which share their profit in a fix ratio. May be this agreement is in a written or oral format.

Different types of Duties of Partners

Here, we mention some duties of partners like –

ü  Duty to work hard for business and for the profit of all partners

ü Every partners must act faithfully for the partners and other partners

ü Every partners has a duty to maintain true and correct account of business

ü  Every partners must do everything to save the firm from losses

ü  Every partner use business property for business use

ü  It become duty to bear the loss according the ratio

ü  No partners have the authority to so the same business

ü  Every business have a predefine area to work so must follow the rules and responsibility

ü  It become the duty of every partners that he will not share the business interest with other

Right of a partner

Right of a partners in partnership

Partnership is a mutual relationship between two persons for some profit making activity. Individual, we call them partners and jointly, we call them partnership. A partnership is a result of an agreement between the social unites or human being for some economic goals. Any partnership requires two or more persons which share their profit in a fix ratio. May be this agreement is in a written or oral format.

Right of a partner

Partnership Deed show/give lot of right to a partners like –

ü  Every partners have a right to manage the business

ü  Decision making – every partner have a right to participate in decision making or giving any suggestion or opinion

ü  Every partners have a right to go through the account or financial reports of business

ü  Every partners have a right to equal sharing of profit or a prefix ratio

ü  Every partners have a right to receive a interest in capital or investment or any loan on a fix ration

ü  Every partners have a right to use business property for the business use

ü  He a right to stop any new entry or partners

ü  Right to retire

ü  A retired person have start its own business having a smeller product of previous one

Different types of Partnership

Different types of Partnership

Partnership is a mutual relationship between two persons for some profit making activity. Individual, we call them partners and jointly, we call them partnership. A partnership is a result of an agreement between the social unites or human being for some economic goals. Any partnership requires two or more persons which share their profit in a fix ratio. May be this agreement is in a written or oral format.

Different types of Partnership

Here, we mention some partnership like –

ü  A person who invest capital in a ration, take a part in decision making also have a ratio for profit-loss, we call it active partnership or working partnership.

ü  A person who have not involve in decision making but have a ratio in capital investment and profit – loss, we call them sleeping partner.

ü  Nominal partners – A person who use his name only for business but there is no investment in company and also no profit sharing nut responsible for any payment against business.

ü  There are lots of persons who do not want to show them self as a partners, normally known as – secret partners. They are also responsible for payment against business.

ü  A person below the age of 18 years, come under the minor partners.

ü  Some person has money to invest but they are not able to bear loss. We know them as-Partner in profit. They are also responsible for payment against business.

                                                                                                                                          

Different contain for “Partnership Deed”

Different contain for “Partnership Deed”

Partnership is a mutual relationship between two persons for some profit making activity. Individual, we call them partners and jointly, we call them partnership.

A partnership is a result of an agreement between the social unites or human being for some economic goals. Any partnership requires two or more persons which share their profit in a fix ratio. May be this agreement is in a written or oral format.

 “Partnership Deed”

Here, we mention some important points for list –

ü  Firm name

ü  Partners – name & address

ü  Business types or nature

ü  Time frame for partnership

ü  Capital invested by partners

ü  Withdrawn by partners

ü  Profit – Loss sharing ratio

ü  Partners salary or commission

ü  Joining or retirement of manpower

ü  Dissolution & settlement of partners

ü  Payment of loan & settlement

What you know about partnership

What you know about partnership

Partnership is a mutual relationship between two persons for some profit making activity. Individual, we call them partners and jointly, we call them partnership. A partnership is a result of an agreement between the social unites or human being for some economic goals. Any partnership requires two or more persons which share their profit in a fix ratio. May be this agreement is in a written or oral format.

What you know about partnership

Main feature for partnership –

ü  Minimum two persons – In partnership, we require two persons at a minimum as per law and maximum is 20. It will not be a partnership if companies not follow the criteria.

ü  Agreement – every partnership have an agreement. Without agreement there is no accountability. If some persons have a relationship & doing work but they did not have a agreement, we not call it agreement.   

ü  Every partnership has some activity/business which produces some economic gain.  There is no partnership for functions and charity

ü  Every business/partnership has a mutual benefit and all those efforts carry out by all partners and all economic gain divided into a fix ratio.

ü  High risk is involved in partnership and partners will be responsible for interested and related party payments.

ü  Partnership requires a high level of blind faith on each others. Very actions should be taken for mutual benefit of the company.  

Sole proprietorship – merits and demerits

Sole proprietorship – merits and demerits

Sole proprietorship – a business in which a person responsible for managing all the business activity, responsible for providing fund and bearing all the risk. It is also called single man business or one person business. In these types of business a single person is responsible for all the matters related with business.

merits and demerits

Here, we mention some merits or demerits like –

Merits - :

ü  Easy formation

ü  Highly motivated

ü  High level of business secrets

ü  Fast decision making

ü  Close relationship with different party

ü  High level of economic attention

ü  Flexible – decision & expansion

ü  Easy to start

Demerits - :

 ü  Unlimited risk

ü  One person to manage but uncertainty of life

ü  Did not have a wide range of managerial ability

ü  Low level of influence in market

ü  Every person have a limited capital to invest

What you know about Sole Proprietorship

What you know about Sole Proprietorship

Sole proprietorship – a business in which a person responsible for managing all the business activity, responsible for providing fund and bearing all the risk. It is also called single man business or one person business. 

Sole Proprietorship

In these types of business a single person is responsible for all the matters related with business.

Some feature/characteristics for these types of business –

ü  Own capital – these types of business start only with own capital. That person manages all the capital from his own resources for investment purpose.

ü  These types of business have a small size and a single person is responsibility for all the activity.

ü  Manage & control – the sole proprietorship manage all the activity of business. A owner make all the decision & have a full control over all the full activity.

ü  These types of business have an unlimited liability. Risk factor is really high in these types of business.

What you know about Business Enterprises or Organization

What you know about Business Enterprises or Organization

Business enterprises or organization is defines as a unit of people or social group constructed for some special economic goals. The main activity of an organization is goal oriented and they have a clear road map & coordination in respect of duties and responsibilities. These human beings fully coordinated in respect to their assign activity.

Every organization have some common feature like – have a size, complex structure, formality and top to bottom hierarchy. In other words, we can say that every organization formed for some cooperative action to accomplish the collective economic goals with a clear pre-define rules or setup. For example – business organization, education group, Government bodies and hospitals.

Business Enterprises or Organization

Here, we mention some common feature/characteristics like –

ü  Permanent establishment/body – Every organization have a permanent body rules & continue without any disturbance from retirement or step-down by any employee from top to bottom.

ü  Economic goals – every organization setup for some special economic goals within define activity. Other words every organization have all goal oriented activity.

ü  Every organization have a team of specialization person to accomplish the economic goals

ü  Mutual coordination – organization goals directly or un-directly attached with every single activity. Pre-define rules and procedure is must for every organization.

ü  Structure/working body- every organization have a pre-define working structure with role and responsibility and having a fix hierarchical from top to bottom