Planning is "Thinking before the action takes place". It decides beforehand, what, when, how the task is to be accomplished. It is not exactly same as strategy, which is nothing but "a comprehensive plan." The strategy is all about using a trick to gain success in a particular purpose. It is the skill of managing affairs of the enterprise. In the business, one might come across with the terms planning and strategy, end number of times. Planning is the basic function of management, that tries … [Read more...]

Merger and acquisition are the two most commonly applied corporate restructuring strategies, which are often uttered in the same breath, but they are not one and the same. These are the form of external expansion, whereby through corporate combinations, business entities purchases a running business and grows overnight. It helps the business in maximizing the profit and growth by increasing the level of production and marketing operation. While merger means "to combine", Acquisition means "to … [Read more...]

A share certificate is a written document prepared by the company under its common seal and sent to the members, containing the number of shares held by him/her and the amount paid thereon. The document work as an evidence for the ownership of shares of the shareholder. It is not exactly same as share warrant. Technically, share warrant, is an instrument, which signifies that the holder of the instrument is entitled to the shares mentioned in it. It a bearer document, which can be transferred … [Read more...]

The memorandum of association and articles of association are the two charter documents, for setting up of the company and its operations thereon. 'Memorandum of Association' abbreviated as MOA, is the root document of the company, which contains all the basic details about the company. On the other hand, 'Articles of Association' shortly known as AOA, is a document containing all the rules and regulations designed by the company. While the MOA sets out the company's constitution, and so it … [Read more...]

As per Section 61, Companies Act, 2013, the company can convert its shares which are fully paid up, into stock. A 'Share' is the smallest unit into which the company's capital is divided, representing the ownership of the shareholders in the company. A 'Stock' on the other hand is a collection of shares of a member that are fully paid up. When shares are transformed into stock, the shareholder becomes a stockholder, who possess same right with respect to the dividend, as a shareholder … [Read more...]

Communication is a natural phenomenon, it is an act of interacting with people and sharing information with them. Do you know, whether you speak or not, it communicates the message to the other party. There are two types of communication Verbal and Non-verbal. Verbal communication is a form of communication in which you use words to interchange the information with other people either in the form of speech or writing. On the contrary, Nonverbal communication does not use words for … [Read more...]

The company form of business organization enjoys a number of benefits over the partnership. This is due to the fact that, in a partnership firm, there must be at least two persons, mutually agree to run the business and share the profits or losses in a manner prescribed in the agreement. The maximum number of partners a partnership firm could have is only 20. This gave rise to the evolution of Company, in which there can be any number of members. The company is an association of persons who … [Read more...]

Equity Shares are the shares that carry voting rights and the rate of dividend also fluctuate every year as it depends on the amount of profit available to the company. On the other hand, Preference Shares are the shares that do not carry voting rights in the company as well as the amount of dividend is also fixed. One of the major difference between equity shares and preference shares is that the dividend on preference shares is cumulative in nature, whereas the equity share dividend does … [Read more...]

When we talk about a company, the terms shareholders and members are commonly used as synonyms, as one can become a member of the company, except by way of holding shares. In this way, a member is a shareholder and a shareholder is a member. The statement is true but not completely, as it is subject to certain exceptions, i.e. a person can become the holder of shares through transfer, but is not a member, until the transfer is entered in the register of members. In the same way, the … [Read more...]

 Someone said correctly "The very attempt of, not to speak, speaks a lot."Communication plays a crucial role in our life, as people interchange their ideas, information, feelings, opinions by communicating. Formal communication is one that passes through predefined channels of communication throughout the organization. On the contrary, Informal communication refers to the form of communication which flows in every direction, i.e. it moves freely in the organization. Communication could be … [Read more...]