It may be divided into the following types:- Authorized Registered or Nominal Capital This represents the total amount of the share capital authorized by the Memorandum of Association and which the company has the power to issue. Issued Capital This is the capital consisting of the number of shares that have been offered to the…
A government company is a company in which the Government or State Government holds 51% or more of the paid-up capital. Government Company, also called Public Enterprise, State Enterprise. It works as other companies registered under the Companies Act. Features of Government Companies The main features of Government companies are as follows: It is registered…
A limited partnership firm formed by general partners and limited partners, where the general partner(s) run the business and have liability and limited partner(s) has no day-to-day involvement in the business decision making. A limited partner’s liability for a partnership firm is limited to the invested amount in the company. There are two types of…
In a partnership firm, you can find different types of partners. Some may actively participate in the business while others prefer not to keep themselves engaged actively in the business activities after contributing to the required capital. Also, certain kinds of partners neither contribute capital nor actively participate in the day-to-day business operations. Let us…
In foreign trade, there is no element of the casualness sometimes present in transactions taking place in the local marketplace. If the documentation for a foreign shipment is wrong, even a small detail – the shipment may be refused by customs at the port of exit or port of entry; it may be delayed; it…
A letter of credit is a bank undertaking of payment separate from the sales or other contracts on which it is based. It is a way of reducing the payment risks associated with the movement of goods. Expressed more fully, it is a written undertaking by a bank (issuing bank) given to the seller (beneficiary)…
Entrepreneurship is exposed in the form of a small venture. Every big business today started as a small business. It is the first avenue by which an entrepreneur executes his /her innovative idea/ideas. Historically, small business has played a key role in our civilization. It appeared more than 4000 years ago. Small businesses flourished in…
Location refers to the choice of region and the selection of a particular site for setting up a business or factory. But the choice is made only after considering the cost and benefits of different alternative sites. It is a strategic decision that cannot be changed once taken. If at all changed only at considerable…
Foreign trade is the exchange of capital, goods, and services across international borders or territories. In most countries, it represents a significant share of gross domestic product (GDP). Industrialization, advanced transportation, globalization, multinational corporations, and outsourcing are all having a major impact on the international trade system. Increasing international trade is crucial to the continuance…
A commercial policy or trade policy is a governmental policy governing trade with other countries. This covers tariffs, trade subsidies, import quotas, voluntary export restraints, and restrictions on the establishment of foreign-owned businesses, regulation of trade in service, and other barriers to international trade. Countries that are part of an economic union often have a…