Please choose a business you admire or would like to work for or whose products you love and tell the class what business structure they have chosen (are they a corporation? An LLC? a partnership?) and what are the virtues of that particular business structure. Please write at least 1 sentence about why you have chosen that particular business.
Answer is as under |
Please choose a business you admire or would like to work for or whose products you love and tell the class what business structure they have chosen (are they a corporation? An LLC? a partnership?) |
I will like to work for Outsourcing of financial and information technology because there is a big scope in this market. Also economic is developing in this field. Export earning is very good and government have declared many incentives for providing of export of services |
I will choose to operate my business by formation of Priviate/Public Limited Company |
What are the virtues of that particular business structure. Please write at least 1 sentence about why you have chosen that particular business. ? |
Company ( Private and Public Company) |
A Company is a separate legal artificial person with perpetual succession and common seal. It is created as per the Companies Act and under certain rules and regulation. Company can be private or public, limited by shares, guarantee, one person company etc. Directors are appointed in a company, Shareholder are the members and owners of the company. Companies profit is carried forward and kept as a reserve for future or else it is distributed among the shareholder. The taxation and return filling of the company is separately done |
Advantages are : |
a. Company can get funding from the public for the business and expansion purpose by bringing IPO and issuing debentures |
b. Company can easily avail the loan from bank and private institution |
c. There are many government schemes and subsidy for which only corporations are eligible |
d. Company has good and worldwide prestige rather than other form |
e. Shares can be listed on stock exchange |
f. It continues to exist separately from its shareholder |
Corporation is best suited business structure as raising of fund is very easy here, advantage of tax and subsidy, public image , experience employee and perpetual existence. Therefore I will go with it. |
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