Company law Essay Example | Topics and Well Written Essays - 1500 words - 3

Company law - Essay Example Through the legal frameworks, entrepreneurs who wish to run companies are guided in matter pertaining to establishing and running the companies. The formation of a company may be seen under the law as separate from the association of persons in that it can be held responsible under certain circumstances to be distinct and thus be liable in civic responsibility in which the persons forming it fail to take responsibility. Whenever the persons forming a company fail to perform or deliver as expected in terms of responsibilities and tax conformation, a company stands as a legal person who can take limited liability and who can equally be held responsible under law. Furthermore, the existence of a company as a legal entity confers the company the power to form associations with other companies to form corporate whose responsibilities upon dissolution must be terminated through a certificate of dissolution in order to avoid future responsibilities charged over it as a legal person. Under t he UK law (CA 2006) provisions, companies are interpreted to be separate from their directors and shareholders and under very few circumstances are companies taken in a common sense with their controllers (Commune, 2006, p.3; Anon, nd, Para 1-4). Nevertheless, under certain conditions and provisions, the director or the persons running the company may be interpreted to be part and thus be held responsible for the case of debts and other liabilities. Such instances may be whenever the director(s) may owe the company on shares or in form of assets. Under such discussion, a company owns property and assets distinctly from the proprietors and as such, the directors and the shareholders have no, legal provision to take any property from the company even though they may be having a hundred percent shareholding capacity. This therefore implies that future management has power to sue any previous director under the circumstances of mishandling the company though it belonged to them. On the other hand, the UK law also acknowledges that a company is wholly responsible for its liabilities and debts and under such, the directors or even shareholders have no obligation to pay a company’s debts (Masons, 2010, para 1-3). The legal framework of the United Kingdom acknowledges three types of companies; two of which are private companies but limited by guarantees or by shares and then the public limited companies. This paper intends to substantiate the authenticity of the company being a distinct entity or a different person from the persons who form it under the law as provided for under the United Kingdom 2006 company law frameworks (Anon, nd, para 1-5). In understanding a company as a distinct person or entity within the country’s framework, we shall consider a number of case studies under which, a company is wholly held responsible to argue its way out in instances of legal procedures where the directors or shareholders are not held responsible for any eventua lity. Case 1: Mr. Smith envisions and starts a company, which is limited by shares. Besides registering it under his sole directorship, he equally decides to buy a share from the company worth one pound and does it by full payment and as such, his share becomes fully bought. The company records

Management Accounting Report Essay Example | Topics and Well Written Essays - 1500 words

Management Accounting Report - Essay Example Therefore, while running a business, the management has to focus both on overcoming the current economic hurdles as presented by the existing business environment, as well as focusing on how the anticipated future challenges can be overcome. One of the most vital tools for enhancing business survival in a challenging and competitive business environment is enhanced marketing/outreach efforts (Hoque, 2005 p472). This strategy ensures that a business keep reaching new customers and markets, while ensuring that it still keeps the current market base well informed on its product or service range. Promotion and advertising are strategies that helps a business to remain relevant and competitive, considering that the more the number of people who knows about the existence of the business and its products, the higher the chances of such a business getting more customers. Considering that enhanced marketing/outreach efforts covers both the existing and the prospective clients, a business that advertises and promotes its products is better placed to overcome competition, than a business that does not make any efforts to make more people know about its existence and its offerings (Cullen, et al., 2013, p12). Therefore, in order for organizations to increase both customer and organizational value, enhanced marketing/outreach efforts, aimed at both the current customer base and the potential customer zones, in essential. Knowing and focusing on business Niche Competition in the business environment serves to disorient many business organizations, leaving most of them unsettled on the products or services they would actually offer, or the main client base they are targeting to serve. This is because, the business try to evade the competition by shifting to a different market or product/service offering, where they feel that they may not be faced by stiff competition (Matt, Chenhall, & Euske, 2007 p17). However, considering that the business environment is very dynamic; they end up being faced by the same competitive challenges, thus disorienting the business even further. However, when a business focuses on knowing and serving its niche market, it will understand fully the needs of the customers, and thus tailor-make its products or services to match the specific needs of the niche market (Cullen, et al., 2013, p7). This way, the business is able to cultivate customer loyalty and goodwill, which in turn enhances the repeat purchase from the customers, and thus helps the business to overcome the forces of competition that could face the business (Kloot, 1997 p47). Development of supplier/vendor retention and recruitment programs While the customer is the most important focus for any business organization, the suppliers and the vendors play a very pivotal role in enhancing the success of a business (Matt, Chenhall, & Euske, 2007 p21). The competition in the modern world is not only for the markets and customers, it is also about the sources of cheap and efficient raw materials for a business, and also about a smooth channel of distribution, since all these aspects plays a vital role in enhancing the success of a business, while determining how effective such a business is in the market. Therefore, through