Types Of Business Organization In The Private Sector Economics Essay

Types Of Business Organization In The Private Sector Economics Essay Consist of privately owned business firm or organization, which are formed when entrepreneurs decide to form a firm for the purpose of producing goods and services. Although the entrepreneur (assuming one person) is the owner is not the same entity. The firm (i.e. company or business organization) has its own legal identity that is separate from its owner or owners. The firm actually is an artificial person, and can make contracts, sue and sued, besides owning property and hiring employees; this legal identity is acquired when the firm becomes an incorporated association. The firm may have only one owner (sole proprietorship) or many owners (e.g. unlimited number of shareholders owning a public limited/ listed company), Sole Trader or Sole Proprietorship It is a form business organization in which a person simply sets up to provide goods or services at a profit. In a proprietorship, the proprietor, or owner, is the firm. The assets and liabilities of the firm are the owners assets and liabilities without limit. Business is one where a single individual uses his own funds to start and operate the business. As such, he is entitled to all the profits generated by the business, while at the same time is also responsible for all the losses that may occurs. The Sole Trader is often responsible for the day-to-day management of the business. No legal obligation to be made available to the public(i.e. publish) the financial accounts of a sole trading business is not incorporated business entity and as such the owner is liable for all debts of the sole proprietorship. Example: Sole Trader Business are: hairdressers storekeepers plumbers electricians PC technicians News agent Neighborhood and groceries etc. Partnership Partnership is unincorporated associations whose membership may range from two to twenty members. Partnerships do not have a separate legal entity. All partners provide the necessary finances for the business and will enjoy both profits and losses in agreed percentages, depending on the contribution of each individual into the partnership. Partnerships have unlimited liability and each partner is jointly liable with the other members for any debt incurred by the business. A partnership agreement is usually drawn up by a lawyer ( or legal council), which details the contribution of each part( in cash or in kind), the role and responsibilities of each partner, conditions under which the partnership may be terminated, distribution or compensation in the event of withdrawal of one partner ( termination of partnership) and options for handling intra-partner disputes. Personal names or trade names can be used as business names, and the Application of Business Name form must be filled in before a business can be registered. 4.) Private Limited Companies Private Limited Company:  Private limited companies are small- to medium-sized businesses that are often run by a  family or small group of owners. Most unlimited companies range from being small and medium sized. Most of the time they are run by family members and closed friends. Usually refers to privately owned firms and organizations with limited liabilities. Private Limited Companies are those shares (to represent shares/ percentage of ownership) held privately by individuals who are usually family members or a small group of acquaintances. The general public cannot subscribe (buy) shares in private companies through the open market (i.e. Stock Exchange). Private Limited Companies is restricted t by law and by the companys rules. In contrast anyone may buy shares in a public limited company. Can be found in most countries, although the detailed rules governing them vary widely. It is also common for a distinction to be made between the publicly tradable companies. A company that does not have share capital, but is guaranteed by its    members who agree to pay a fixed amount in the event of the companys liquidation. Charitable organizations often incorporate using this form of limited liability. Private Limited Companies is flexible form of enterprises that blends elements of partnership and corporate structures. The firm of organizations must work a legal framework which governs what they can or cannot do. The law requires for any new limited liability company to provide two documents: Articles of Association provide details on the internal rules of the company. Although the nature of association between members may vary, the Articles of Association must always contains information; the nominal capital when / how shareholders meeting are to be conducted. Voting rights of the shareholders. name of directors. how the directors are appointed. extent and nature of directors authority. how profits and losses will be distributed. Memorandum of Association provides details on the external rules and relations of the company by defining the constitution and authority of the company. Memorandum must always contain the: company name (must include the words limited). address of the registered office. statement of companys aims( must be legal proper). scope of its activities. amount of capital the company wants to raise. statement that the shareholders liability is limited. Private Corporations Companies registered under the Companies Act and Incorporation most common method that firms used to establish themselves a s a separate legal entity, i.e. only incorporated companies have a separate legal identity. 5.) Public Limited Companies Public Limited Company:  Most unlimited companies range from being small and medium sized. Most of the time they are run by family members and closed friends .They are only liable for the business up to the amount they have invested in the company, and are not liable for the debts incurred by the company unless signing a personal guarantee. And those that are listed on the Stock Exchange and members of the general public can but and sell shares of such companies. Owners of shares (shareholders) in such companies are true owner of the business. Whose operations involves many different business sectors ( e.g. several sectors health care, construction, property development, plantation, manufacturing, tourism, education,etc.) become a conglomerate and if such operation/subsidiaries are located in many different countries, then they become Multi National Companies. As their names implied means that the personal liability of the owners (shareholders) is restricted to the amount of money the individuals owner has invested into the company. 6.) Unlimited Companies Unlimited Companies Unlimited Company is where there is no limit to the members liabilities. It is a hybrid company incorporated either with or without a share capital (and similar to its limited company counterpart) but where the liability of the members or shareholders is not limited that is, its members or shareholders have a joint, several and unlimited obligation to meet any insufficiency in the assets of the company in the event of the companys formal liquidation. Companies that do not have any restriction on the personal liability of the owner. In the even of company making loss, then the owners will be liable for all debts. This may hence require them to sell off their private property and/ or possessions (house, land, cars, furniture, jewelry, etc.) to repay their portion of the debt. A corporation structure that permits a company to be incorporated and flew all profits and losses to share holders, an unlimited company shelters shareholders from liability in most circumstances except upon liquidation of the company. Shareholders or past shareholders that despots of their shares less than one year before liquidation become liable for the debts of the company. 7.) Multinational Companies Multinational Companies is essentially a holding company that owns shares in many subsidiary companies located in many different countries. Each subsidiary companies within the holding company will be subjected to the company law of the host country in which the subsidiary is located. They are usually connected by share ownership as well as managerial control. Examples of multinational includes: Shell, Citibank, Siemens, Nestle, IBM, Philips, etc. Multinational companies providing overseas subsidiaries, access turnover (Net Sales), produce of world output. Suppliers and the leading company in the wholesale distribution market and service industry. Do bring some benefits to developing countries. They provide jobs and increase the wealth of local people. Country gains some wealth by way taxes. However, there is some problem as well. The jobs all often low- skilled and poorly paid. Much of profit will go out the country, and the company may pull out to relocate in a country, where it can make greater profits. Primarily interested in making profits for their shareholders. Paying wages is an expense that the company will try to reduce to as low a level as possible. 8.) Conglomerates A holding company, which owns substantial shareholding in companies (subsidiaries), involved in different sectors.   Like examples sun way groups: civil engineering construction, building materials, trading manufacturing. Conglomerates are strictly diversified business interest in producing a varied and wide range of different products. And it is a corporation whose multiple business units operate in different, often unrelated, areas, management umbrella. In some, but not all, cases, the formerly independent elements conglomerates retain their brand identities, though they are responsible to the conglomerates management. . In reality, conglomerates are very useful to the public because support for the agricultural, manufacturing, and industrial and or services. For examples, the Rank organization own subsidiary companies trading. Question 1 Economic Growth is an increase of capital gross domestic of per capital product (GDP) other measure of aggregate income, typically reported as the annual rate of change in real G.D.P. Economics Growth driven by improvement in productivity , involve producing more goods and services with the same input of labor, capital, energy and materials. ( Mankiw 2007).Economist draw a distinction between economics stabilization and long term economics growth. Economics Growth is primarily concerned with long-run, short -run variation of economics growth is termed the business cycle. Economics Growth also occurs when a society acquires or when society learns to produce more with existing resources. New resources may mean a larger labor force or increased capital stocks. The production and use of new machinery and equipment (capital) increases the productivity of workers. Improved productivity also comes from technological change and innovation. Inflation is the increase in the general level of prices of product and services over a specified period of time. Inflation rate can be estimated by measuring the percentage change in the consumer price index, which indicates the price on wide variety of consumer products such as grocery product, housing, gasoline, medical services and electricity. Inflation can effect a firms operating expenses from producing products by increasing the cost of supplies and materials, wages can also be affected by inflation. A higher level of inflation will case a higher increase in a firms operating expenses. A firms revenue may also be high during periods of high inflation because may firm change higher price to compensate for higher expenses.( N. Gregory Mankiw 2007) Productivity is a measure of output from production process, per unit of input, like labor productivity typically also measured as a ratio of output an input. And also conserve of as a metric of the technical or engineering efficiency of production. In nations where workers are less productive, most people endure a more meager existence. Similarly, growth rate of a nations productivity determines the growth rate of its of average income. Productivity the average labor or output of a single worker is important to determine the standard of living. Most country facing a slow economics growth is: Former China, Greece and some Eastern Europe countries. Economic problems of every country are: Price Stability One of the key economics growth is to ensure that the price levels within the country is maintained with minimal fluctuations. Fluctuating price levels will create uncertainty, causing a wait- and see attitude among: consumers, who are ensure of buying now or to wait for the price to fall. Instead of falling, price levels may increase and consumers may then be force to forego consumption. firms, who are unsure of investing now since it is possible for the price of capital goods to also fall in the near future. Again, the price level may rise instead of falling thus causing firm to postpone investment since the cost is now higher than expected. Buying or investing at the wrong time may therefore create frustration and dissatisfaction among consumers and firms. On the other hand, continues increase in price levels although more consistent (i.e. everyone is expecting the price to increase) will lead to inflation and its related problems will then surface. Economics Growth faster than Population Growth Economics growth slow needed to spur the people and to improve their standard of living, which is determined by the ratio between economic growth over population growth. If a countrys population grows faster than its economy, then there will be a decline in living standards and this will lead to many social and other economic problems. The same amount of wealth is now distributed over more people, hence everyone gets lesser than before. Standard of living will also decline if the economic growth is slower than the rate of inflation. This means that the people will need to pay more for a similar basket (combination) of goods and services. Therefore, people with fixed incomes can buy lesser (or enjoy a smaller basket of goods and services) as inflation continues. c) Low Unemployment of Resources This is important to ensure that available resources (especially labor) are fully employed to produce more goods and service. When labor, land and capital are fully employed, more income will be earned (i.e. wages, rental and interest) resulting in higher expenditures among the owners of the factors of production (labor, land and capital respectively). Excess production may also be exported to other countries to earn foreign exchange, making a country economically stronger, in relation to the rest of the world. Countries with high unemployment will tend to have more economic and social problems, such as the following: higher crime rates and corruption activities (since people may resort to illegal means to get more money). health problems and malnutrition (since some people will not eat enough to eat or to have proper diets). D) Equitable Distribution of Income and Wealth It is important for a country to have a fair distribution of income and wealth among its people. The gap between the rich and poor must not be too great. The government must therefore practice an equitable resource allocation system deciding: what to produce? how much to product? for whom to product? Disparity in wealth ownership and distribution will also create various and economics problems. This problem results in low demand for products and services which can reduce a firms revenue. Even the firms that provide basic products or services are adversely affected by a slow economic because customers tend to reduce their demand. The potential impact of slow economic growth is reflected some company expect to experience significant fluctuations in future performance due to general economics growth. When economics is negative for two consecutive quarters, the period is referred to as a recession. When Europe is weak. Worker as laid off by firms and therefore have money that they can used to buy product or services. If economics growth slows the impact economic condition can spread quickly across all business. When condition weak some businesses are more affected more other than others. Nevertheless, most business are adversely affected by economic condition because the demand for product in almost all industrial declined( Markin 2007). Conclusion Introduction to Business is a subject in which a little knowledge goes a long way. By now i realize that all countries in the world have a government entrusted with the responsibility to achieve. Economics goals such as attaining price stability, economic growth, low unemployment and equitable distribution of income and wealth. Government today practice mixed economics system as it attempt to solve the economics problem that resulted from their inability to achieve the desire economics goals. Therefore capitalistic in nature with different degree of government intervention. As such, all countries have both a public sector and private sector.

Good Advice Essay -- Advice Philosophical Papers

Good Advice When we first started to talk about good advice, I didn't fully understand what makes good advice, well, good. "Advice is advice." I said to myself, walking home from class trying to think of where to start. As the subject grew in class, everybody started to get deeper into the subject until we all had a well-based understanding on what good advice is. Everyone had a little different perspective than everybody else, which made the subject very interesting. I realized that there are many requirements for good advice. Looking back on my paper, I realized that I made one point about good advice, which was the only point that I really looked at. This point was how I viewed good advice at that time. I think advice is good when it lets me approach something by myself, so that I, as an individual, can grow with what I learn from it. As apposed to forcing some orders upon me. By ordering me around, the advisor can’t get me to think about what is right for me. This way, I will never learn and it will do me more harm than good in the long run. I still stand by my original opinion, but since then I have learned much more about good advice. Then I heard about the second part of the paper and I was interested in taking notes on people's papers because that day in class, I realized that I could get much more deep into this subject. When I took the notes, I was amazed by how different the advisors were from paper to paper. The advice came from teachers, parents, friends, experts, mentors, and even themselves. This made me realize that advice can’t always be expected or unexpected because I will never know where it will come from. John also made me realize that personal advice is best when it comes from somebody that knows ... ...dvice. The biggest connection with good advice and writing isn't within the phonics or the way it is written. The biggest connection is within the total thought process of both of them. If I want to write a good paper, I should sit and think about it. I should ask myself, "Who is the reader, and what should I do to get the desired effect from them?" This is the same with advice. In writing, I should take the time to think personally about what I want to write about. I’ll analyze the situation like I am giving very important advice. There has to be a connection between the reader and I. The second connection is where I shouldn’t jumble up advice, otherwise it won't be good. The same goes with writing. Size doesn't matter, but I should get to the points I want to reach, otherwise I’ll lose the reader's attention. If I follow this advice, I will become a better writer.

Policies Against the Jews

Hitler was now in control of Europe with the start of World War II. Hitler’s discrimination against the Jews was now turning into downright control of the Jewish population as well as the rest of Europe. It started with the Nazi invasion of Poland. â€Å"The radical, planned programme of ‘ethnic cleansing’ that followed was authorized by Hitler himself (Kershaw 518). † From there, he and Nazi leaders began to dream up new ideas of how to approach the â€Å"Jewish Question. † The Nazi party had already attempted to pursue the Madagascar plan, which would deport all German Jews to the island of Madagascar, however this failed. Now Hitler had his eyes on the east; the Soviet Union to be exact. â€Å"He was now thinking about something else, not exactly more friendly (Kershaw 594). † Hitler was hinting at the takeover of the Soviet Union which was an inevitable event, and using this as a â€Å"dumping ground† for the Jews (Kershaw 594). † Hitler’s idea of what to do with the Jews was in no way a clear-cut vision. The recent invasion of Poland was an option for Hitler in the later months. For some time, there was uncertainty with what to do with the Jewish people and how they would complete their plan of ‘ethnic cleansing’ (Kershaw 521). In his Reichstag speech in October in 1940, Hitler also mentions the â€Å"ethnic resettlement as preparation for the ‘new order’ of ethnographical relations in former Poland (Kershaw 521). Poland would later be used as a place for Hitler to transport the Jews into concentration camps. Franz Rademacher, the new head of the Foreign Ministry’s ‘Jewish Desk’ had begun to devise options for solutions to the ‘Jewish Problem’ in the summer of 1940. He provided 3 options that included deporting the Jews to Western Europe, removing them from Europe entirely, or sending them all to Palestine. Complications would make it so that none of these options would work. Great Britain would have to be secured in order for the Madagascar plan to work and using Palestine was an unfavorable choice for the Nazi’s (Kershaw 578). In the meantime, Hitler was dealing with the British and Germany’s relations with the Soviet Union. The German’s and Soviet Union were now at a disagreement. This did not sit well with Hitler and he could see their relations with the Soviets slowly deteriorating (Kershaw584). Read also Analyze the Ways in Which British Imperial Policies The increasingly hostile relations between the two countries were giving way for Hitler’s justification of Operation Barbarossa. Hitler’s plan to evacuate and eradicate the Jews started with Operation Barbarossa. This plan was to take over the Soviet Union and Eastern Europe in order to have a place to â€Å"remove the Jews to†. Hitler was unsure of how well Operation Barbarossa was going to be executed. â€Å"Outwardly confident, he was inwardly less certain (Kershaw 589). † However unsure he was, this was going to be the plan to solve the â€Å"Jewish Question. The Nazi policies involving the Jewish people took a lot of time to finally complete. There were a lot of different options that Hitler and Nazi officials had discussed when attempting to find a solution to the â€Å"Jewish Question†, but ultimately, the final decision lie within the fate of Operation Barbarossa. It would be the success in the invasion of the Soviet Union that would determ ine the success of the relocation of the Jews in Europe. War was the only option that Hitler and the Nazi officials deemed reasonable for their final decision. Thus, Operation Barbarossa commenced.

The Minimum Wage Should Be Legal - 905 Words

Rise in minimum wage has several impacts apart from unemployment. The minimum-wage workers would have to pay more taxes and receive fewer benefits if they are subjected to rise of minimum wage. The federal marginal rate for tax is 32 percent on an average for low earning members. This would amount to almost one third of the income of a worker. The tax rate is quite high for low paid workers. The rise of minimum wage would also reduce some of the advantages and leverages that the low-wage workers enjoyed previously. In United States, the increase of minimum wage for workers would have some disadvantages including paying payroll taxes and payments for Social Security and Medicare (Clark 445). The economists have therefore stated that the minimum wage should be an amount that could meet the basic needs of a worker and it should not be increased unnecessarily without proper inspection because it could have negative impact in the life of the workers. The marginal tax of 32 percent does no t include the benefits of Medicaid coverage services. However, the benefits of minimum-waged labors would definitely reduce as a result of slight increase in the minimum-wage. Majority of the people believe that workers should be paid the amount that they are worthy of getting paid. In a free-market economy, the salaries of different persons should be different. For example, the salary of a 16 year old boy should not be similar to a 30 year old lady or single mother. There should be someShow MoreRelatedMinimum Wage Should Be Legal1427 Words   |  6 PagesThere has been a growing desire for minimum wage to be set at $15 an hour. While many of our lowest pay employees will be getting paychecks, workers who have been at businesses longer feel like they’re being undermined. Employees say that it is not fair for a new worker to be earning as much as someone who has been apart of the company for three years. Also, raising minimum wage poses a financial and management challenge for employers. Numerous cities have passed wage increases in the past year, andRead MoreMinimum Wage Should Be Legal1307 Words   |  6 Pagesconcept of minimum wage has been a h uge issue among Americans and has really become a large discussion point among a lot of the political debates as well as the Internet recently. According to the United States Department of Labor, â€Å"The federal minimum wage is $7.25 per hour effective July 24, 2009. Many states also have minimum wage laws. Some state laws provide greater employee protections; employers must comply with both†. Regardless of the constant debates that occur on whether or not minimum wageRead MoreMinimum Wage Should Be Legal940 Words   |  4 PagesMinimum wage is now at a steady $7.25 per hour and shows no sign of increasing anytime soon. There are states right now at the time that are trying to raise the minimum wage, and see how this will effect the economy of the area. As prices continue to increase in every day expenses, it becomes hard for us to keep up and be able to provide for our family or get even the basic necessities that we may need. People are saying that with more money, they will spend more back to the economy, thus helpingRead MoreMinimum Wage Should Be Legal1239 Words   |  5 PagesRaise Minimum Wage There is not one state in the US where a minimum wage worker can afford a two-bedroom unit at fair market rent, working a standard 40-hour work week(There are a few states where this is not true. Also, the fair market rent is the average cost. It doesn t reflect the super expensive and bottom rent places). The federal minimum wage would be $10.86 [per hour] if it had kept up with inflation over the past 40 years. Instead, it is $7.25 [per hour]. Every state in the US should haveRead MoreMinimum Wage Should Be Legal1435 Words   |  6 PagesMinimum wage is currently a very heavily debated topic. Many are in favor of raising the current national minimum wage of $7.25 to a more livable wage; suggestions for this increase are anywhere between $9-15 per hour. While the minimum wage has been raised several times throughout the years, it has not been kept proportional to raises in inflation which has led to a decrease in the amount of goods that people are able to buy with those wages, in turn making their economic lives more difficult. ThoseRead MoreMinimum Wage Should Be Legal1156 Words   |  5 PagesIn United States, we hear the government, businesses argued about minimum wage. Whether it should be raised or leave it the way it is. But, what exactly is minimum wages? Minimum wage is the least amount of money per hour that must be paid to a worker after surrounding a service according to the law. Many working class families’ lives depend on this minimum wages. There are few families who make less than $15000 a year who feed their families on this salary and still pay bills from it. Over the pastRead MoreMinimum Wage Laws Should Be Legal900 Words   |  4 PagesMinimum wage bill majorly refers to a price control that is imposed by the government. The price control concept set a floor indicating what the minimum price must be paid or be imposed on certain services or goods (Murphy). The main aim of a government setting up price controls is always to ensure individuals or employers of a certain job group receive fair wages. Also, the minimum wage laws are mostly used by the federal government to ensure a basic quality of life among all the countries citizensRead MoreThe Federal Minimum Wage Should Be Legal2004 Words   |  9 Pagesinvolved in an impassioned debate over the federal minimum wage. As of October 5, 2016, the federal minimum wage is set at seven dollars and twenty-five cents an hour. There are numerous amounts of stakeholders when it comes to minimum wage. The three stakeholders mentioned in this essay will be Companies, Employees, and the Economy. In addition to the stakeholders, this essay will also dig into the history of the United States Federal Minimum Wage and see how it has progressed over the years and ifRead MoreRaising The Federal Minimum Wage799 Words   |  4 Pages In the US, President Barack Obama urges Congress to raise the federal minimum wage to $10.10 an hour from $7.25. Although some Republicans oppo se to this action, overwhelming majority of Americans see that is a good idea (The Guardian, 2014). Regarding to the issue of minimum wage, there have been lots of debates for a long time. Some economists such as Milton Friedman deeply believe that minimum wage kills jobs, but some like Alan Krueger and David Card think, to some extend, it actually increasedRead MoreThe Challenges of Implement a Minimum Wages Policy1077 Words   |  5 PagesCreating a so called â€Å"culture of compliance† among employers (Skidmore 1999: 435) is a low-cost strategy for facilitating the self-enforcement of minimum wage. This strategy implies the construction of persuasive arguments in favor of the minimum wage and the appeal to common values and beliefs such as, for instance, the principle of â€Å"fair pay – fair play†. Here, two main strategies for building commitment among employers can be identified. First, persuasive processes at the interpersonal level