...How to correct the Balance of Payment ? Solution to correct balance of payment disequilibrium lies in earning more foreign exchange through additional exports or reducing imports. Quantitative changes in exports and imports require policy changes. Such policy measures are in the form of monetary, fiscal and non-monetary measures. Monetary Measures for Correcting the BoP ↓ The monetary methods for correcting disequilibrium in the balance of payment are as follows :- 1. Deflation Deflation means falling prices. Deflation has been used as a measure to correct deficit disequilibrium. A country faces deficit when its imports exceeds exports. Deflation is brought through monetary measures like bank rate policy, open market operations, etc or through fiscal measures like higher taxation, reduction in public expenditure, etc. Deflation would make our items cheaper in foreign market resulting a rise in our exports. At the same time the demands for imports fall due to higher taxation and reduced income. This would built a favourable atmosphere in the balance of payment position. However Deflation can be successful when the exchange rate remains fixed. 2. Exchange Depreciation Exchange depreciation means decline in the rate of exchange of domestic currency in terms of foreign currency. This device implies that a country has adopted a flexible exchange rate policy. Suppose the rate of exchange between Indian rupee and US dollar is $1 = Rs. 40. If India experiences an adverse...
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...MODULE -2 Business Organisations Notes 5 FORMS OF BUSINESS ORGANISATION ou have studied in the first lesson about the business, its significance and the classification of business activities. You are also aware that these activities are carried out by individuals in an organised form of a business house having different patterns of ownership and management. A single individual may own the business or a number of individuals may come together to own the business jointly. So, based on ownership, we have different forms of business organisation like a proprietary concern, a partnership firm or a company. In this lesson, you will learn about the various forms of business organisation (excluding a joint stock company), their characteristics, merits and limitations, suitability and the steps involved in their formation. Y OBJECTIVES After studying this lesson, you will be able to: • • • • • explain the concept of business organisation; state the meaning and characteristics of Sole Proprietorship, Partnership, Joint Hindu Family Business and Cooperative Societies. identify the merits and limitations of these forms of business organisation; describe the suitability of these forms of business organisation; and explain the steps in the formation of these business organisation. 5.1 BUSINESS ORGANISATION You have already learnt about the meaning of business and the various types of business activities like industry, trade, transport, banking, insurance etc. If you observe...
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...CHAPTER 1 AN OVERVIEW OF FINANCIAL MANAGEMENT (Difficulty: E = Easy, M = Medium, and T = Tough) Multiple Choice: Conceptual Easy: Firm organization Answer: c Diff: E [i]. Which of the following statements is true? a. One of the benefits of incorporating your business is that you become entitled to receive unlimited liability. b. Sole proprietorships are subject to more regulations than corporations. c. Sole proprietorships do not have to pay corporate tax. d. All of the statements above are correct. e. None of the statements above is correct. Firm organization Answer: c Diff: E [ii]. Which of the following statements is most correct? a. One of the advantages of the corporate form of organization is that there is no double taxation. b. The partnership form of organization has easy transferability of ownership. c. One of the disadvantages of the sole proprietorship form of organi-zation is that there is unlimited liability. d. Statements b and c are correct. e. None of the statements above is correct. Firm organization Answer: a Diff: E [iii]. Which of the following statements is most correct? a. One advantage of forming a corporation is that you have limited liability. b. Corporations face fewer regulations than sole proprietorships. c. One disadvantage of being a sole proprietor is that you have to pay corporate taxes, even though you don’t realize...
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...Name___________ Period__________ Unit 3 – Business and Labor Chapters 8 & 9 C H A P T E R 8 Business Organizations S E C T I O N 1 Sole Proprietorships The Role of Sole Proprietorships _______________________________________________________________________________________________________________________________________________. A ______________________ is an establishment formed to carry on commercial enterprise. Sole proprietorships are the most common form of business organization. Most sole proprietorships are small. All together, sole proprietorships generate only about __________________ of all United States sales. Characteristics of Proprietorships _______________________________________________. Many proprietors run their businesses part-time. (see chart) Advantages of Sole Proprietorships 1.Ease of Start Up:________________________________________________________ _______________________________________________________________________. 2.Relatively Few Restrictions:_______________________________________________ _______________________________________________________________________. 3.Sole Receiver of Profit:___________________________________________________ _______________________________________________________________________. 4.Full Control:____________________________________________________________ _______________________________________________________________________. 5.Easy to...
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...Assignment #2 – Family Related Issues Dr. Rodgers Law and Ethics – LEG 500 July 29th, 2011 Explain if it matters that a parent literally had nothing to do with a biological child in order for the child to take advantage of the Family and Medical Leave Act (FMLA) to care for that parent. Family dynamics plays an important on various roles in our day to day lives as well as our careers. Every family has their own ways of deciding who has the power and authority within the family unit, and which rights, privileges, obligations, and roles are assigned to each family member. However not all families are structured in this matter. In this case study, an employee Tony who is employed at an Auto car dealership informed his boss that his father is ill and needed surgery. Tony stated to his boss Herman that he would like to take a leave of absent to care for his terminal father; Tony also disclosed to his boss the non existing father/son relationship to Herman who told Tony that he could lose his job if he decided to take a leave of absent. The family and medical leave act established to help employees keep their benefits and jobs attending to family and serious medical issues. The Family and Medical Leave Act (1993) states that, a parent is either the biological parent or the person who acted as the parent when the employee was a child. A son or daughter is either biological, adopted, under foster care, a stepchild, a legal ward, or any child that the employee is assuming parenting...
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...Business Law Name Institution Business Law When starting a new business, there is a range of legal issues that the two graduates should put into consideration before making the business operational. Everything from the business structure to its operation to its name has legal implications. Before starting the business, the two graduates are required to sample legal concerns that they want to address with their attorney before they start the business (Miller, Cross, & Jentz, 2013). They should make sure that the business name they wish to use (“Take No Prisoners” in this case) is not already being used by some other business. They can accomplish this by conducting a name search using the appropriate state agency, which is often the office of Secretary of State. In case the chosen name is not used already by another organization, they can go ahead and reserve it with the office of the Secretary of State for a period of about 120 days, as they prepare their articles of organization or a partnership agreement. They will also need to decide on the kind of business structure that suits their business such as partnership or limited partnership. In deciding this, they will be required to take into consideration liability issues that are associated with their business (Miller, Cross, & Jentz, 2013). The graduates will also be required to acquire a business license and a tax registration before beginning their operation. When selecting the location...
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...Acme Fireworks Business Evaluation Ryan Magana BUS311: Business Law I (BBL1524C) Maureen Martinous July 13, 2015 Acme Firework Business Evaluation Acme Fireworks is looking to change the business entity of their company but needs help deciding how to go about doing it. There are plenty of options for the company to go with but some might be more beneficial when it comes to thinking about long term. In this evaluation we will go over the options that are available and what we consider to be the best course of action for Acme Fireworks. Running a business can be an extremely difficult job to take on for anyone, no matter what experience you have. 365 days a year you need to be available for whatever course of action might take place. There are many aspects of a business that need to be monitored very closely and these are some examples: production, sales and customer service, business entity, liabilities, and employment types. References Mancuso, A. (2014). Chapter 3: Forming and Running Your Business. LLC Or Corporation?, 59-80. Mancuso, A. (2014). Chapter 6: Converting a Sole Proprietorship to Another Entity. LLC Or Corporation?, 153-176. Rogers, S. (2012). Essentials of Business Law. San Diego, CA: Bridgepoint Education, Inc. Smith, V., & Neuwirth, E. B. (2009). Temporary Help Agencies and the Making of a New Employment Practice. Academy Of Management Perspectives, 23(1), 56-72. doi:10.5465/AMP.2009.37008003 Steingold, F. S. (2015). CHAPTER 1: Which...
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...Family Related Issues by Darryl Mitchell Professor Kenneth Pino Law, Ethics, and Corporate Governance – LEG 500 July 23, 2011 1. Explain if it matters that a parent literally had nothing to do with a biological child in order for the child to take advantage of the Family and Medical Leave Act (FMLA) to care for that parent. Whether a parent had nothing to do with a biological child have nothing to do with the child being eligible for FMLA to care for that parent and it shouldn’t matter. Regardless of the relationship between a parent and child, the child would fall under the FMLA and would be able to care for the parent. Under FMLA, an employee can care for a parent if they have a serious health issue. Even though the video never stated what the issue is, since the father will be having surgery that would fall under a reasonable explanation for the employee to take the leave. A parent can be either a biological parent or someone who stood in place of a parent in raising a child. It never states anything about the type of relationship a parent needs to have with the child. Since he is actually the biological child he would fall under the FMLA and would be able to care for the parent. 2. Explain whether the size of the business can have any effect on whether Tony is eligible for family leave under the FMLA. The size of the business can have an effect on whether Tony is eligible for family leave under the FMLA but not in the way Herman describes...
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...Akiva and Tara are equal partners in the business. Akiva and Tara are both have the same education and experiential requirements to start the birth clinic. Akiva’s and Tara’s name will be on the loan. Both are brining the same things to the table like education, experience, money and desire to own their own business. Akiva and Tara are entering into a general partnership with each other. They will have equal control and voting right with the business. The money earned from the business will be represented on their individual personal income tax returns. Within a general partnership each partner is responsible for liabilities jointly of the contract and debts of each partnership. This is important because each person in a partnership can be sued by a plaintiff if the plaintiff names each partner in the suit. The partners can be sued equally if this happens. If the plaintiff does not name all the partners in the suit then just the partner that is named will be sued. If any partner does not pay their part of a loss then the remanding partner may seek indemnification from him or her. Went a new partner joins a partnership the exiting debts and obligations of the partnership are liable only to the extent of his or her capital contribution. But when an incoming partner joins a partnership the partner is personally liable for debts and obligations incurred by the partnership after they have became partners. The Civil right Act of 1964 is laws that businesses need to make sure that...
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...Business Entities, Laws, and Regulations Trudy E. Hartis BUS/415 November 20, 2011 Mark Rorem Business Entities, Laws, and Regulations A business assumes limitations and liabilities when building the structure of the organization. There are several types of business entities, hiring an accountant or attorney can help you decide what type of business structure best fits the need of the organization or business that you want to establish. Sole proprietorship, is a form of business with the least amount of legal formalities and the owner assumes sole responsibility for finances and operations of the business. “C” Corporation, are separate entity from its owners. Providing shareholders protection from liability and debts. “S” Corporation, similar to a corporation and is exempt from federal income tax. General Partnership, require an agreement between two or more individuals or entities to own and operate a business. Limited Partnership, form of business that offers some of the partner’s limited liability. Limited partners contribute capital and have limited liability but assume not active role in the daily business affairs. Limited Liability Partnership, LLP’s is organized to protect individual partners form personal liability for the negligent acts of others partners or employees not under their direct control. Limited Liability Company, LLC is a combination of the corporate and partnership forms of business (Types of Business Entities, 2004)...
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...Part 1 Business Enterprises in China 1.0 Introduction 2.0 Proprietorships 3.0 Partnerships 4.0 Corporates 1.0 Introduction In the People’s Republic of China, business organizations may be classified in to three main classes: individual proprietorships, partnerships, and corporations. The laws that effect these forms of business enterprises are diverse. There is no single code or statute that governs the PRC law of business enterprises. According to the sources of capital, there are domestic capital enterprises which are regulated by Sole Proprietorship Enterprise Law of the People's Republic of China , Partnership Business Law of the People's Republic of China, and Company Law of the People's Republic of China and foreign capital enterprises which are regulated by The Measures for Administration of the Establishment of the Partnership by Foreign Enterprises or Individuals within the Territory of China, Law of the People’s Republic of China on Chinese-Foreign Con-Tractual Joint Venture, Law of the People’s Republic of China on Chinese-Foreign Equity Joint Ventures, and Law of the People’s Republic of China on Foreign – Capital Enterprises. The relevant laws are the Security Law , the Fair Competition Law and the Antitrust Law. 2.0 Proprietorships 2.1What is a sole proprietorship enterprise A sole proprietorship enterprise means a business entity established within China with its capital contributed by one individual and its assts owned personally by the sole proprietor...
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...Business Entities Lisa Ramos BUS311: Business Law I Instructor: July 28, 2014 Business Entities I. Introduction “Business owners are wise to consider the fundamental issue of organizational formbefore they become too deeply immersed in business operations.” (Rogers, 2012) When it comes the laws of business there are is a large range of categories and topics which include the type of entity to become and how it affects contracts, liabilities and tax information. We must be aware that there is more than just one type of entity and determining what type of business to become can have some legal implications and therefore must be reviewed thoroughly. II. Types of Entities A. Sole Proprietorships 1. Types of Businesses 2. Potential liabilities 3. Contract responsibilities 4. Employment opportunities B. Partnerships 1. Types of Businesses 2. Potential liabilities 3. Contract responsibilities 4. Employment opportunities C. Corporations 1. Types of Businesses 2. Potential liabilities 3. Contract responsibilities 4. Employment opportunities D. S Corporations 1. Types of Businesses 2. Potential liabilities 3. Contract responsibilities 4. Employment opportunities E. Limited Liability Company (LLC) 1. Types of Businesses 2. Potential liabilities 3. Contract responsibilities 4. Employment opportunities III. How are contracts enforceable? A. Five...
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...signed by Janet an employee of the company. Janet did not know she was signing a lease. It was not presented as a lease and Janet assumed it was a delivery slip. Quick Takes Video is arguing the nature of the contract because Janet did not know she was signing the contract, it was verbally expressed as a trial offer, and the product did not perform. This was the legal course for the company until Karen brought up the fact that neither she nor Hal had entered into a lease. Janet did not have the authority. This brings up the legal issue of agency. Did Janet have the authority to act as an agent and sign into a lease for the partners? Was she acting as an agent of Hal’s when she signed the lease agreement? In the text book Business Law: The Ethical, Global, and E-Commerce Environment the authors collaborate and describe the creation of an agency relationship. “An agency is created by the manifested agreement of two parties that one party (the agent) will act for the benefit of the other (the principle) under the principles direction. As the term manifested suggest, the test for an agency’s...
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...INTRODUCTION Agency has been defined as a legal relationship that exists between two persons where one called the agent is considered in law to represent the other called the principal in such a way as to affect the principal’s legal position in relation to other parties. This presentation will explore the below: • Definition of agency • Creation of agency • Effects of contracts made by agents • Rights and duties between principal and agent • Termination of agency DEFINITION OF AGENCY An agent is a person employed to do any act for another or to represent another in dealings with third persons. Cap 23 Laws of Kenya is the law that governs Agency law in Kenya. The law of agency is based on the common law rules developed by English courts and rulings made by other courts in the Commonwealth. On March 14th 1978, Kenya adopted the convention on the law applicable to agency. In Timmins (Town) v Brewers' Warehousing Co. Ltd (1962) Schroeder, J.A. stated, inter alia, that "the outstanding feature of an agent's employment in a legal sense is that he is employed primarily to bring about business relations between the principal and third persons, and this characteristic is perhaps the most distinctive mark of the agent as contrasted with others not agents who act in representative capacities". The law of agency prescribes the legal rules for determining- (a) How a person may become an agent; (b) The rights and duties between the agent and the principal; (c) The relations...
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...following are some of the forms of business existing in the United States and their characteristics: a. Sole proprietorship b. General partnership c. Limited partnership d. C-corporation e. S-corporation f. Limited Liability Company This report contains an overview of some of the forms of business organizations that exist in the United States. Because of the federal system of the U.S., the many forms of business organizations are subject to the laws and regulations of the state where they operate or are registered. Both federal and state taxes are also taken into account by business owners and financial advisors in the choice of the business form (Perez, 2009). Liability, tax consequences, and legal implications are generally the most important actors business owners consider when choosing a business form. a) Sole Proprietorship The most basic of the forms of business organization is the sole proprietorship where the business is owned by a single person. There are more registered sole proprietorships in the U.S. than the other forms of business. In addition, many big businesses have started out as sole proprietorships (Jordan, 2008). Liability: The owner of a single proprietorship is not protected by limited liability, so he is not insulated from his business debts and obligations. He is personally liable to pay for the debts and obligations the business may incur. The capital of the business entity includes the cash and...
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