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3 Main Motives behind Selling Companies | Entrepreneurship

This article throws light upon the three main motives behind selling companies. The motives are: 1. Locating the Right Buyer 2. Secure Acceptable Terms of the Deal 3. Obtaining Satisfactory Autonomy. Motive # 1. Locating the Right Buyer: For entrepreneurs concerned about the company’s future, this task involves locating the correct buyer — one whose […]

Private Limited and Public Limited Companies

This article will help you to make comparison between private limited and public limited companies. Comparison # Private Limited Company: 1. Membership: Membership is confined to the close friends and relatives of the promoters. Cannot invite public to share capital. 2. Limits to Membership: Minimum members-2 Maximum members – 50 3. Election of Directors: No […]

Joint Stock Company and Partnership Organisation

A joint stock company and partnership form of organisations can be compared as under: Comparison # Joint Stock Company: 1. It has a separate legal entity, having its existence separate from its shareholders. 2. It may consist of any number of members. 3. Shares can be transferred to others without the consent of anybody. 4. […]

Top 8 Attributes of Excellent Companies

This article throws light upon the top eight attributes of management style that represent excellent companies. The attributes are: 1. A Bias for Action 2. Stay Close to the Customer 3. Autonomy and Entrepreneurship 4. Productivity through People 5. Hands on, Value Driven 6. Stick to the Knitting 7. Simple Form, Lean Staff 8. Simultaneous […]

Organization Structure of a Company

This article throws light upon the two main types of organisation structure of a company. The types are: 1. Functional Structure 2. Divisionalised Structure.   Type # 1. Functional Structure: All work of the same kind is put into one managerial unit. Every company starts with a basic functional organisation. When business is small, products […]

Valuation of Rights of Shareholders (With Formula)

If the shareholder, who is offered right shares, does not want to purchase further shares, he can renounce or sell his rights within the specified period. As, generally, the rights shares are offered to the existing shareholders at a price lower than the market price of shares, the right to purchase these shares is valuable. […]

Bonus Issue of Shares

After reading this article you will learn about:- 1. Meaning of Bonus Issue 2. Effects of Bonus Issue 3. Advantages 4. Disadvantages. Meaning of Bonus Issue: A company can pay bonus to its shareholders either in cash or in the form of shares. Many a times, a company is not in a position to pay […]

Top 5 Problems on Bonus Issue of Shares (With Solution)

Here is a compilation of top five problems on bonus issue of shares with their relevant solutions. Bonus Issue of Shares: Problem with Solution # 1: The following are the extracts from the draft Balance Sheet of A Ltd., as on December 31,2010 A resolution was passed by the company declaring bonus of 25% on […]

4 Main Guidelines for Issue of Bonus Shares

This article throws light upon the four main guidelines for the issue of bonus shares. The guidelines are: 1. Conditions for Bonus Issue 2. Restriction on Bonus Issue 3. Bonus Shares only against Reserves, etc. if Capitalised in Cash 4. Completion of Bonus Issue. Guideline # 1. Conditions for Bonus Issue: Subject to the provisions […]

Right Issue by a Company

After reading this article you will learn about:- 1. Meaning of Right Issue 2. Guidelines Issued By SEBI for Right Issues 3. Advantages. Meaning of Right Issue: Rights issue is an invitation to the existing shareholders to subscribe for further shares to be issued by a company. A right simply means an option to buy […]

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