VOLUNTARY WINDING UP UNDER THE SUPERVISION OF COURT

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According to section 396 of Companies Ordinance, a voluntary winding up of a company can also be carried under the strict registration of the court. 1.  Resolution At first, company has to pass special resolution for the voluntary winding up of the company. 2.  Supervision Order Following are the common grounds on which the court issues the supervision order: 1.  The liquidator performs his duty in partial manner. 2.  The winding up resolution is obtained by fraud. 3.  The liquidator does not strictly observe the rules of winding up the company 3.  Power of the Court The court has the power to appoint an additional liquidator, or to remove any liquidator. 4.  Dissolution After the supervision order is made, the liquidator may exercise his powers in winding up of a company.  On completion of winding up, the court will make an order that the company is dissolved. Share Capital; In simple words, the term “capital” means the particular amoun...
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FUNCTIONS OF BUSINESS

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Following are the main functions of a business: 

1.  Production 

Production of goods and services is the first main function of the business.  The production must be regular. The goods and services must be produced in such a way which can satisfy human needs. 

2.  Sales 

The sale is another important function of the business. Sales are of two types: 

ƒ  Cash sales 
ƒ  Credit sales 

The sale must be regular and at reasonable price. It is very difficult job because there is hard competition in each market. 

3.  Finance 

It is also an important function of the business to secure finance. Finance is required for establishment and expansion of business.  There are two sources of raising funds: 

  (a)  Owner’s Capital 
  (b)  Borrowed Funds 

4.  Management Function 

“To  do  things  efficiently  and  effectively”  is  known  as  management.  The  functions  of management are: 

  • ƒ  Planning 
  • ƒ  Organizing 
  • ƒ  Leading 
  • ƒ  Controlling 
  • ƒ  Staffing 


5.  Innovation 

In  this  era  of  competition,  for  the  survival  of  business,  innovation  is  essential.  The businessman must try to find new techniques of production because the business may not sell present output in future. 

6.  Accounting 

Another function of the business is to maintain its records properly.  To record the business activities  is called  accounting.  With  proper  accounts,  the  owner  can  know  the  actual performance of business and chances of fraud are reduced. 

7.  Marketing 

According to Harry Henser 

“Marketing involves the design of the products acceptable by the consumers and the conduct of those activities which facilitate the transfer of ownership between seller and buyer.” 

Through  marketing,  goods  are  moved  from  producers  to  consumers.  It  is  an important function of the business.  This function includes buying, selling, transportation, product designing and storage, etc. The concept of marketing mix is very important in marketing. It includes four Ps: 

  • ƒ  Product 
  • ƒ  Price 
  • ƒ  Place 
  • ƒ  Promotion

8.  Quality Improvement 
 
Quality of product must be improved to increase the sale. If quality of product is poor then business may suffer a loss. 
 
9.  Motivation 
 
Motivation  is  very  essential  for  increasing  the  efficiency  of  employees.  Motivation encourages the employees to give their best performance.

10.  Research
 
Research is also an important function of any business.  Research is a search for new knowledge.  By research, business becomes able to produce improved and new goods. The research is of two types: 
 
  • ƒ  Basic Research 
  • ƒ  Applied Research 
 
11.  Public Relation 
 
It is very important function to make friendly relations with public, in this way sales volume 
is increased.

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