function of business

 Function of business :-

Following are the function are essential in business. I am explain all the function how you can improved business with this function

Production :-

The business should produce or manufacture certain goods for the purpose of sales. The production of goods or services is a regular function of business enterprise. The goods must be produced with minimum cost and sufficient quality to meet the demand of people. this is the main function of business

Purchases :-

The manufacturing business is bound to purchases raw material for the production of goods.the business is concerned with purchase of store and spares for repair and maintenance of machinery.

Sales :-

The sale function of business is just like oxygen for a men.the life of business is linked with sales because business is depends upon sufficient sales volume.

Finance :-

The business is successful if payments are made on due dates. The owned capital and borrowed capital must be sufficient to meet the fixed and working capital requirements. The success of business depends upon finance and business failure means  shortage of finance.

Storage :-

The storage function is important due to regular production and seasonal consumption and vise versa. There is need of storage facilities in order to improve the quality of certain products like tobacco, rice and date paims.

Advertising :-

The business must advertise its products in order to inform the consumers. The products can be sold only if the consumer is aware about the price and quantity and working of the product.

Insurance :-

There is risk involved in business due to uncertainties in future. The business must buy insurance policy of insurable risks. The insurers share the risk of loss due to unforeseen circumstances.

Transportation :-

The goods are produced in factories and mills but there are used by consumers. There is need of transportation of goods from factories and mills to residential areas where the consumers are living. The business must make agreements of transportation of goods.

Research :-

The business make research for inventions and innovations. The introduction of new products and new models of old products are possible through research facilities. In this way he keeps the business a live in competitive markets.

Accounting  :-

The business keeps detailed record of production purchases sale wages and other day to day expenses. There is need of proper books of accounts for sales tax, income tax, and legal requirements.

Personal :-

The personal department look after the welfare of the workforce. The business deals with recruitment, selection, training, appraisal, health and safety, equal opportunities. Payment systems and work disputes.

Information :-

The business office is an information house. The incoming and outgoing information is stored in the office. The businessman can plan his business activities on the basis of such information. The budgets can be prepared for the years of come.

Public relations :-

The big businesses maintain public relations in order to win the favour of  the general public. Annual accounts are published and people are invited to visit the business office. The  public opinion becomes favourable in case of rise in prices they do not boycott the products of the business.  

objectives of business combination

objectives of business combination :-

Following are the objective of business combination. I am explain all the business objectives in points 

Stable price :-

The purpose of combination is stability in price level. The combination is made by business owners for keeping prices at same level. The supply is usually controlled by combining units.

Use of idle resources :-

The idle resources of country can be used for benefit of mankind. The objective can be achieved through ample capital funds. The combination of many business units means collection of large funds. The combination of the many business units means collection of large funds which are used to manage large scale business.

Reducing expenses :-

The objective of combination may be to lower the expenses. The expenses can be reduced due to purchase discount, common, advertising, low transport cost, common management are reduction of waste due to efficient operations.

Increase credit standing :-

The objectives of combination may be to increase the credit standing of the business units among the banks and other lenders. There is increase in the value of assets due to combination.

Use of technology :-

The business combination provides ample resources for purchase of technology. The purpose of combination may be to purchase modern machine and better methods of production.

Expert management services :-

The business combination may be made to hire expert services. The combination is necessary to obtain the benefits of common management.

Economics of large scale :-

The economies of large scale can be achieved through combination of many business units.

Leadership :-

The business combination provides leadership to the people who have the ambition to become the boss. They know that there is a great respect for leaders. The ambition for respect becomes the basis of combination.

Stability of business :-

The combination provides stability to the business units in times of depression and recession. The business can produce and sell goods for a number of years at the same level.

High profits :-

The purpose of many business units is to earn profit. The combination may be to increase the rate of profit. The elimination of competition is necessary to raise the rate of earning.

   

 

features of co operative society

Features of co operatives society :-

There are many characteristics and features of cooperatives society.

Open membership :-

The membership of society is open for people having good character. The membership remains open throughout life of society. There is need of 10 members to run the society. The maximum  number increase or decrease due to incoming and outgoing members.

Voluntary retirement :-

The members can leave society when they like. A person cannot transfer his capital to others. He has right to withdraw his shares.

Elected management :-

The membership of society is elected by members from among themselves. The rule of one man one vote is applicable. A member with one vote becomes head of society.

Voting rights :-

In a co operative society every member has equal voting rights. The members are given to power of one vote each.it is a spirit of democracy that members are counted but not weighted.

Limited liability :-

The liability of members is limited. The word limited must be used after the name of society. It is a common feature that co operative societies are registered with limited liability.

Cash trading :-

The co operative societies deal on cash basis. Cash trading is very helpful to work with minimum capital resources.

Services motive :-

The prime importance is given to service out normal profit is needed to meet expenses. The real purpose of co operative society is services of all the members.

Return on capital :-

The rate of return is 6.25 percent per annul for consumers, producers and housing society. The resources or general society can pay 7.50 present.

Surplus profits :-

The remaining profit may be transferred as twenty five percent to reserve fund in case of resource or general society and ten percent of the net profit in case of any other society.

Legal status :-

A co operative is usually registered under co operative societies act 1925. The registration is desirable and not compulsory. After registration the society is given legal status.

Local area of operation :-

The society is made by poor person  living in particular area.the area of operation is limited. It is suitable for small size business.

Limited finance :-

The capital of co operative society is contributed by member through purchase of shares. The members are poor and weak so capital collected may be small.

Nature is business :-

A co operative society is a form of business. It is not charity show. The profit is distributed among members. The losses are shared by members is an agreed ratio.

Management training :-

The idea of co operation is simple in theory and difficult in practice. An expert management is key to success in business. The government can import training to managers for successful working.

features of company

Features of company:-
what are the feature of a company

There are many features of a company. I can explain all the features in points

Registered association :-

A company is an association of persons. A company may be registered under the companies ordinance 1984 or under the special of the parliament . Any how the company is register under the law in force.

Legal person:-

A company is formed as a separate and independent person. The company is known as legal person after registration. A company can control with others in its own name.

Common seal :-

A company is an artificial person. The company must have it common seal. The seal is issue as signature of the company to make agreements. At least two directors must witness the documents.

Long life :-

A company has a long life.it has no link with the life of members. When the director act upon the law an share holder do not pass a resolution for winding up the company cannot die. Thus company has long life as compared to other businesses.

Legal entity :-

A company is created under the law. It has separate legal entity. The shareholder and the company are different from each other. The change in the membership cannot affect the position of the company.

Limited liability :-

The liability of shareholder is limited up to the amount of shares purchased. The private of the shareholder can be not use to pay business debts. It is a charm for the owners to start risky venture.

Separate management :-

The shareholders may not like to participate in management. The management is separate form the owners. The shareholders elect the directors to manage the business affairs.

Many members:-

The capital of a public company can be contributed by many investors. The minimum number of members may be fixed but upper limit of shareholder is not fixed.

Separate property :-

The property if a company is separate from the property of its shareholders. The company can buy and sell property in its own name.

Share transfer:-

The shares of public limited company are transferable.the shareholder can sell in open market.the transfer of shares goes on throughout the life of a company.

Democratic setup :-

The shareholders elect the directors through votes. The voting rights are linked with the number of shares held. The directors can elect managing director and chairmen.

Legal scale business :-

A large scale is able to supply sufficient goods at reasonable rates to the consumer. A large scale business can compete in the market due to quality output.

Capacity to sue :-

A company has the power to sue the shareholder and the other people. The company can protect its rights through court of law.

High fixed cost :-

The company operates on large scale basis. Its fixed cost is high. When there is depression there is highest loss.