Organisation Behaviour
Introduction:
In this assignment I have been asked to look at various types of organizations and who are there main stakeholders, I will also look at how the business we are looking at in this assignment would operate in a free market economy and whether a high inflation rate and import duties would affect how the business performs.
After a sole trader and a partnership the next step for business would be turning into a private limited company (LTD). A private limited company is owned by shareholders but unlike a public limited company (PLC) the shareholders who own that company are not the general public because a private limited company cannot sell its shares in the stock exchange. Then who would it sell to? A private limited company is much like a public limited but it is a relatively smaller organization so in order to raise money to invest in the business it must sell its shares to friends and family only. The amount of investment maybe be limited because it can only sell its shares to a maximum of 50 shareholders and the shares can only be sold by the permission of the board of directors because for instance not all the 50 shareholders can directly command the business and how it performs, they could, but it would be a chaos there would be too many ideas therefore too many conflicts in between the shareholders this will ultimately result in the failure of the business itself. So in order to prevent all this, the partners (shareholders) elect the board of directors to run the company for them however they may choose but in the best interest of the company. A company is a legal body in its own right with an existence that is separate in law from its owners. The company will thus be sued and can sue in its own name. Every company must register with the registrar of the companies, and must have an official address. There is little paper work to be done such as the Memorandum of Association, it records the agreement of the first subscribers to form a company
In this assignment I have been asked to look at various types of organizations and who are there main stakeholders, I will also look at how the business we are looking at in this assignment would operate in a free market economy and whether a high inflation rate and import duties would affect how the business performs.
After a sole trader and a partnership the next step for business would be turning into a private limited company (LTD). A private limited company is owned by shareholders but unlike a public limited company (PLC) the shareholders who own that company are not the general public because a private limited company cannot sell its shares in the stock exchange. Then who would it sell to? A private limited company is much like a public limited but it is a relatively smaller organization so in order to raise money to invest in the business it must sell its shares to friends and family only. The amount of investment maybe be limited because it can only sell its shares to a maximum of 50 shareholders and the shares can only be sold by the permission of the board of directors because for instance not all the 50 shareholders can directly command the business and how it performs, they could, but it would be a chaos there would be too many ideas therefore too many conflicts in between the shareholders this will ultimately result in the failure of the business itself. So in order to prevent all this, the partners (shareholders) elect the board of directors to run the company for them however they may choose but in the best interest of the company. A company is a legal body in its own right with an existence that is separate in law from its owners. The company will thus be sued and can sue in its own name. Every company must register with the registrar of the companies, and must have an official address. There is little paper work to be done such as the Memorandum of Association, it records the agreement of the first subscribers to form a company