Download - joint stock and public enterprise
BRCM COLLEGE OF BUSINESS ADMINISTRATION
BRCM COLLEGE OF BUSINESS ADMINISTRATIONASSIGNMENT 2(2015-2016)MANAGERIAL ECONOMICS-(PAPER-2)F.Y.BBA (SEM-2)TOPIC : JOINT STOCK COMPANYPUBLIC ENTERPRISEPresented by: group-2
INTRODUCTIONJoint Stock Company is a voluntary association of different persons created by law as a separate body for specific purposes.
It possesses a common capital contributed by its members such capital being divided into transferable shares.
The liability of each such member is limited to the face value of the shares he holds.
DEFINITION
MEANINGA company or association consisting of individuals organized to conduct a business for gain and having a joint stock of capital represented by shares owned individually by the members and transferable without the consent of the group
FEATURES
Artificial person
Created by law
Capital divisible into transferable shares
Limited liability
Perpetual succession
Ownership is distinct from management
Common seal
Voluntary association
Separate legal entity
May sue or be sued
FORMATION
DOCUMENTS TO BE PROVIDED FOR CERTIFICATE OF INCORPORATIONMemorandum of associationArticles of associationList of directorsConsent of directors (in writing)Address of the companys officeProspectusDeclaration by secretary about legal requirements
CLASSIFICATION
ON THE BASIS OF INCORPORATION
ON THE BASIS OF LIABILITY
ON THE BASIS OF NUMBER OF MEMBERS
ON THE BASIS OF CONTROL
ON THE BASIS OF PLACE OF REGISTRATION
PUBLIC VS PRIVATE COMPANY Number of members
Transfer of shares
Number of directors
Subscription of shares
Provision for minimum subscription
Word inserted after name
Certificates
Provisions of AOA
First statutory meeting
MERITS Huge resources
Limited liability
Transferability of shares
Stability of existence
Efficient management
Scope for expansion
Economies of large scale production
Public confidence
Social benefits
Diffused risk
Tax benefits
DEMERITS Difficulty in formation
Oligarchic management
Delay in decision-making
Separation of ownership and management
Lack of secrecy
Speculation in shares
Fraudulent management
Concentration of economic power
Excessive Government regulations
Evils of Factory system
SUITABILITY OF JOINT STOCK COMPANYVolume of business is large
Businesses which involve heavy risks
Business activities which require public support and confidence
Ex: like production of pharmaceuticals, machine manufacturing, information technology, iron and steel, aluminum, fertilizers, cement, etc.
CONCLUSION
Meaning:The business units owned, managed and controlled by the central, state or local government are termed as public sector enterprises also known as public sector undertakings.
denotes a form of business owned and managed by the state government or public authority.
undertaking owned & controlled by the local ,state or central government.
The whole or most of the investment is made by the government.
definitions
featuresAutonomous or semi-autonomous organization
State control
Rendering service
Useful to various sectors
Monopoly enterprises
A direct channel for use of foreign money
Public accountability
Agent for implementing government plans
Financial independence
OBJECTIVES OF PUBLIC ENTERPRISEEconomic development
Self-reliance
Development of backward areas
Employment generation
Economic surplus
Egalitarian society
Consumer welfare
Public utilities
Defence
Labour welfare
Forms of management :
MERITS Balanced growth
Long period planning
Facilities for economic development
Greater public welfare
Equal distribution of wealth
Better co-ordination
Abolition of monopoly
Greater economy
Better relation with labour force
Better deal to consumers
Utilization of local resources
Achievement of self-reliance
Establishment of heavy and strategic industry
Balanced production
DEMERITSLack of initiation and efficiency
Lack of selection of goods
Political interference
Slow growth
Poor management
Lack of flexibility
SUITABILITYPublic accountability and operational autonomy
Monopoly powers
Financial dependence
CONCLUSION