Legal Structure And Types Of Stakeholders
One of the most important decisions that any business would make at its inception will likely be the decision on the type of legal structure to use because the legal structure will determine a lot of things. For example, it will determine the amount of tax to pay, the kind of paperwork that will be needed and even the capacity to raise finances as well as the personal liabilities that you might have to contend with. Some regular types of business include sole trader, partnership, corporation and S corporation.
This is the most uncomplicated type of structure that any business can have. It requires only one individual who owns …show more content…
It protects business owners against liability, both losses and earnings are transferred to the owners and are added to personal tax income. It can have as many shareholders as possible and any of the owners can take part in the running of the business.
1.2 The extent to which an organisation meets the objective of different stakeholders
Stakeholders are all the people who are interested in a business in one way or another. Different stakeholders have different interests in the organisation and the organisation has an obligation to meet the needs as much as they can. Examples of stakeholders are: shareholders, employees, government, suppliers and dealers.
These are the people who invest their funds in the business. Their interest is usually growth of the business in other to increase financial returns on their investment. Organisations want to maximise their profits just so that they can meet up with shareholder dividends if not to increase then at least make sure it does not reduce in …show more content…
These policies are supposed to make the economy grow steadily, cause balance in payments, reduce unemployment and inflation. Fiscal policy is supposed to cause stability while monetary policy is the medium through which fiscal policy would work.
The major instruments of the fiscal policy are government purchases of products and net of taxes. The government can increase its purchases or reduce rate of taxes as the case may be in an attempt to control the economy. The central bank attempts to control money supply in the economy by varying reserve requirements, interest rates and other factors. Supply of money in circulation can also be regulated by selling and buying government bonds. (Mankiv, 2012)
2.3 Impact of competition policy and other regulatory mechanisms on the activities of a selected organisation
The aim of the competition policy is to manage competition amongst organisations. Without these policies, prices of goods and services can easily rise. Four leading competition policies in the UK and in the European Union include the state aid control, the market liberalisation, antitrust and Cartels and merger