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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IMPORTANCE OF BUSINESS ORGANIZATION

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The following points elaborate the role of business organizations: 

1.  Distribution 

Another benefit of business organization is that it solves the problems of marketing and distribution like buying, selling, transporting, storage and grading, etc.  

2.  Feedback 

An  organization  makes  possible  to  take  decisions  about  production  after  getting  the feedback from markets. 

3.  Finance Management 

It also guides the businessman that how he should meet his financial needs which is very beneficial for making progress in business.

4.  Fixing of Responsibilities 

It also fixes the responsibilities of each individual. It introduces the scheme of internal check. In this way chances of errors and frauds are reduced. 

5.  Minimum Cost 

It helps in attaining the goals and objectives of minimum cost in the business. 

6.  Minimum Wastage 

It reduces the wastage of raw material and other expenditures. In this way the rate of profit is increased. 

7.  Product Growth 

Business organization is very useful for the product growth. It increases the efficiency of labor. 

8.  Quick Decision 

Business organization makes it easy to take quick decisions. 

9.  Recognition Problems 

Business  organization  makes  it  easy  to  recognize  the  problems  in  business  and  their solutions. 

10.  Reduces the Cost 

Business organization is useful in reducing the cost of production as it helps in the efficient use of factors of production. 

11.  Secretariat Functions 

It also guides the businessman about the best way of performing the secretarial functions. 

12.  Skilled Salesmen 

It is also a benefit of the business organization that it provides the skilled salesmen for satisfying various needs of the customers.

PRE‐REQUISITES OF BUSINESS 


Following are the main pre‐requisites of a successful business: 

1.  Selection 

The first and most important decision before starting a new business is its selection. If once a business is established, it becomes difficult to change it.  One should make a detailed investigation in the selection of business. 

2.  Feasibility Report 

A person should prepare the feasibility report about the business to be started. This report will provide the facts and figures whether business is profitable or not. 

3.  Nature of Business 

There  are  various  types  of  business  like  manufacturing,  trading  and  services.  The businessman should decide that what type of business he would like to start. 

4.  Demand of Product 

The businessman also keeps in view the demand of the product which he wants to sell. If the demand is inelastic, the chances of success are bright. If the demand of a product is irregular, seasonal and uncertain, such business should not be started. 

5.  Size of Business 

The Size of business means the scale of business. The size of business depends upon the demand  of commodity  in  the  market  and  organizational  ability  of  entrepreneur.  The determination of size of business is an important decision of a person. 

6.  Availability of Capital 

Availability of capital is an important factor in the business. Capital is required for the purchase of land, machines, wages and raw materials. A businessman must decide that how much capital he can arrange.

7.  Government Policy 

The businessman should also carefully consider the policies of government before starting a new  business. Some  areas  are  declared  as  ‘tax  free  zones’  and  for  some  particular businesses the loan is provided without any interest. 

8.  Availability of Raw Material 

Availability of Raw material is essential to produce the goods at low cost. Sometimes the raw material is to be imported which may create problem for him. So a businessman must keep this factor in mind. 

9.  Availability of Machines 

Availability of new machines is also an important factor for a business. A businessman must see whether these machines are easily available inside the country or not. If these are to be imported then it may create the problems for him. 

10.  Availability of Labor 

Skilled and efficient labor is essential to run the business in profit. But if efficient and skilled labor is not available where business is going to be started then it will not be profitable. 

11.  Means of Transportation 

Quick and cheap means of transportation are essential for low cost of production and high profit rate. A businessman must keep in view this factor. 

12.  Power Resources 

There  must  be  availability  of  power  resources  like  water,  oil,  coal  and  electricity.  So businessman must keep in view this factor. 

13.  Hiring Employees 

A  businessman  must  hire  the  efficient  and  competent  employees  in  the  business.  The proper training must be given to employees.

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