Pros: revised the statues can help to reduce the power of CEO and give the large shareholders more power to make the decision and changes for the company. In the case we can see there has a problem that independence of the board of directors at Friendly, as they were unable to control the activities of CEO and chairman. So If the CEO doesn’t want to change behavior, shareholder can give rights to make decision instead of let CEO make own opinion making decision to avoid the mismanagement. Cons: It is unsure that is good to give the shareholders big rights to make the decision for the company because not all shareholders have the intention to help and improve the company. Like board of directors in Friendly did not have unity among each other’s, so the company should to balance the power of each participant.
For example a state enterprise may employ surplus workers which is inefficient. The government may be reluctant to get rid of the workers because of the negative publicity involved in job losses. Therefore, state owned enterprises often employ too many workers increasing inefficiency. 3. Short Term view; A government many think only in terms of next election.
The main draw to S-corporations is that they are not double taxed. A few business structures to consider are: Sole Proprietorship: This is a common business structure choice, simply because it’s easy to form. It also allows you to keep control as the sole owner. This is great, but heavy is the crown, since you and you alone are responsible for all the financial issues. Partnership: This is when you enter into a partnership agreement to share profits, as well as losses the business acquires.
Plato’s Diner demonstrated a lack of business management skill, lack of human resources management and marketing skills. A display of total disregard for labor laws and taxes rules. Chris Papas created a hostile work environment. For Plato’s Diner to be successful they have to make changes and move forward with innovation or they will not survive in today’s market
Several organizations implement HR policies and practices that are harsh in nature and don’t see employee benefit. They might be fine keeping in mind the company’s interests but also contribute to the attrition rate, employee turnover because they can be very demotivating to the employees. Such policies may be in line with the business model but are not in sync with the employee. Employees feel that these organizations are selfish and only care about the business and not the employee’s welfare. However, no company wants to let go of its employees because higher attrition rates lead to a negative name in the market for the company.
The restriction maximum numbers of private limited companies will affect the credit standing is lower than that of a public companies, this will affect the financial and managerial resources of a private limited companies are comparatively limited. Secondly, the lack of transferability of shares will result a shareholder cannot leave a private company easily and quickly. The poor protection to members are always occur in private limited companies, the minority members may suffer at the hands of the majority members, this dissatisfied members cannot cut off their connection with the company except at a
The simplest example is that in which employees are intrusive with the normal flow of money in a way that makes it less obvious for the business owner. With businesses getting more and more intricate, it is harder to track down where each cent goes and bad faith lures everyone at a given moment. A company dealing with fraud will make investors and business partners hesitant to transact in the organization. Of course, no one wants to deal with the organization having a bad record and you cannot trust. Brand loyalty might stop or slow down the process but if we are talking about serious and repeated fraud, there is close to nothing you can do.
Despite companies knowing the importance of having a motivated workforce, many continue to deliberately ignore it and as a result they pay the price Leadership and Motivation For various companies having a motivated workforce is not usually a priority because the expenses associated with it, for example bonuses or company outings. These companies however, assume they have a motivated workforce when truly they don’t. Other companies are willing to invest in motivating their employees because in the end it affects the organization. Therefore, the problem is organizations not being able to distinguish the signs of workers that are un-motivated and consequently know that something is wrong. Despite companies knowing the importance of having a motivated
Therefore, whichever company makes the profit, it finally ends up as a profit of the parent firm. 3.Since companies in an oligopolistic market have full control over it, they are capable of deciding prices as per their choice. Though this practice is illegal, it works in favor of these businesses. 4.Dominant market players usually make long-term profits in an oligopolistic environment. This is possible because the market does not allow an old business to increase its share.
Strengths of a partnership business are, the capital used to the business if high comparatively to a sole proprietorship business because more partners means more capital. Another strength is very successful decisions can be made because by discussing with partners a very good decision can be made. Another strength is if the business gets any losses the loss is divided among the partners so a person no need to bare a huge loss. Weaknesses of a partnership business are, when making decisions fight may arose among partners because some partners may not like the decisions of others decisions. Another weakness is the profits are divided among the partners because more the partners less the amount of profit get by one partner.