Meaning of company

 

Meaning of company

 

 

Company is a large capital Business. The capital is divided into small units that are called shares. The company collects the capital from issue of shares. Therefore company means large types of business firm, which is collected the capital by issue of common stock and it is artificial person also. The company does the work itself. The Shareholders are the main owners of the company. The shareholders select a committee to operate the organization and share holders received dividend from the profit of the Company.

The company is better than sole proprietorship and partnership-firm. Because it starts from huge capital and best management. The lifetime of the company is also more than sole proprietorship and Partnership firm. The shareholders select best management committee from share holders and they manage the business by better way. In the company the liabilities of the shareholders are limited and share are easily transferable from one to other share holders. In the company the small investors also can purchase the shares because the rate of shares is low Like Rs 100 per share. The company has the huge capital so, the companies can competition from any organization and it can increase the market to different countries also.

In the summary we can say that Company means one types of large organization which is established to earn profit. The company issue shares to public to collect the capital.

 

Features of company

a. Artificial person: Company is a artificial person, because the company can purchase and sale the goods or can do any business transactions by its own name and signature.

b. Limited liabilities: One best features of the company is limited liabilities. In the company the Shareholders only pay the shares purchase price which he/ she purchase. The shareholders should not pay other liabilities of the company.

c. Transferable shores: Shares of the company are transferable. Because the shareholders can sell or buy any time without any information to company.

d. Common seal: There is a common seal of company from which company do the business activities as artificial person.

e. perpetual existence: The company's life time is long time Became company has more capital and more shareholders. The company operate from management committee and sport person of management.

 

Advantages of company

• Company start from big capital so it can expanse the business to international market.

• Company is a regular operated business and its life is more than other business.

•The company's shares are transferable therefore; the shareholder can buy or sell any time.

•The shareholders liabilities is limited in the company. The shareholders liabilities are only to pay the Share price.

.The Company receives some tax allowances from the government.

 

Disadvantages of company

.Difficulties to establish and close the company.

• Difficulties for fast decisions.

. Probability of conflict between management committee and shareholders.

• Weakness of secrete information.

In this way there are the disadvantages of Company. But at present the company is very popular and strong organization for global market. Company cans easily competition from other organizations.

 

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