meaning,definitation and characteristics of multinational companies

Multinational Companies: Meaning and Definition;

Multinational companies are corporation which have their home in one country but operate and live in the different country. Due to the tremendous growth of transportation, communication and technology particularly during the last two decades,the world has now become a global village.The distance between has becomes as shorter as ever and the geographical barriers between them have virtually missing.As a result, the mutual dependence among the countries has increased. For example coco cola origins in the united state, but a workers drinks coke ‘made in Nepal’ to ques his thirst.similarly,nescafe coffee is originally produce in Switzerland , but an American family enjoys ‘necafe’ made in ‘USA’ every morning in the Chicago.There are several other example of products which are originally manufacture in one country,and are now being manufacture and consume din the other countries.This has been possibly due to the Multinational companies.
Multinational companies are also sometimes called global or transnational corporations. As their names sugest,they have their roots in their own country,but have branches in many other countries.For example:the Unilever Company has its branch in Britain,but it has its subsidiary in Nepal,India ,and other many counties.thus multinational companies refers to those business organization which have their main operation in a country and subsidiary operation in many other countries.
Multinational companies are mega form of business organization.which carries out their production and distribution of goods and services in at least two countries.Their owner ship and management are scattered around the countries wherever they operate.They are incorporate in one country as parents company of multinational companies can viewed as holding company and the branch companies as its subsidiaries.
Generally the majority of the shares in subsidiary are held by the parent company and the rest by local people and institution.Similarly,the management and finance are under control of the parent company giving some autonomy to the subsidiaries.Multinational companies are engaged in the mass production and distribution the goods and serves around the world.IBM corporation, nestle company, ford motor corporation.coco-cola company,etc are the example of multinational companies.
Characteristics of Multinational companies:
The following are the characteristics of the multinational companies:
1. Large scale business:
The capital of multinational companies considerably large.its assets and volume of sales are also quite large.The sales turnover of some multinational companies are much more then the annual budget of many developing countries.
2. Productive Organization:

Multinational companies are involved in the production distribution of goods and services at the international companies and level.They produce goods and sales them in one brand name of trademark allover the world.

3.Global operation:
Multinational companies operate globally.the parent company manufacture an sells its products and services through its subsidiaries established in other countries.Hence,they perform their business scale at the global scales.

READ MORE ABOUT JOINT STOCK COMPANY

Meaning and definition of Multinational Company

Multinational Companies: Meaning and Definition;

Multinational companies are corporation which have their home in one country but operate and live in the different country. Due to the tremendous growth o transportation, communication and technology particularly during the last two decades,the world has now become a global village.The distance between has becomes as shorter as ever and the geographical barriers between them have virtually missing.As a result, the mutual dependence among the countries has increased. For example coco cola origins in the united state, but a workers drinks coke ‘made in Nepal’ to ques his thirst.similarly,Netscape coffee is originally produce in Switzerland , but an American family enjoys ‘necafe’ made in ‘USA’ every morning in the Chicago.There are several other example of products which are originally manufacture in one country,and are now being manufacture and consume din the other countries.This has been possibly due to the Multinational companies.

Multinational companies are also sometimes called global or transnational corporations. As their names suggest,they have their roots in their down country,but have branches in many other countries.For example:the Unilever Company has its branch in Britain,but it has its subsidiary in Nepal,India ,and other many counties.thus multinational companies refers to those business organization which have their main operation in a country and subsidence operation in many other countries.

Multinational companies are mega form of business organization.which carries out their production and distribution of goods and services in at least two countries.Their owner ship and management are scattered around the countries wherever they operate.They are incorporate in one countryas parents company of multinational companies can viewed as holding company and the branch companies as its subsideries.

Generally the majority of the shares in subsidiary are held by the parent company and the rest by local people and institution.Similarly,the management and finance are under control of the parent company giving some autonomy to the subsidiaries.Multi national companies are engaged in the mass production and distributiono fthe goods and servi es around the world.IBM corporation, nestle company, ford motor corporation.coco-cola company,etc are the exmple of multinational companies.

Characteristics of Multinational companies:

The following are the characteristics of the multinational companies:

1. Large scale business:

The capital o multinational companies considerably large.its assets and volume of sales are also quite large.The sales turnover of some multinational companies are much more then the annual budget of many developing countries.

2. Productive Organization:

Multinational companies are involved in the production distribution of goods and services at the international companies and level.They produce goods and sales them in one brand name of trademark allover the world.

3.Global operation:

Multinational companies operate globally.the parent company manufacture an sells its products and services through its subsidiaries established in other countries.Hence,they perform their business scale at the global scales.

Main documents of company

Main documents of company:
Formation of company requires preparing some documents and papaers.These documents are required to be attached with the application form.every company requires to fulfill the documents. the documents that are require for the company are:

Memorandum of association:
memorandum of association is the most important documents that is required for the organization or company, which is to be enclosed with the application form. It sis the foundation of company which the structure of the company is visualized. It describe the objective and right of the company, and also regulates the relationship of the company with the other parties. It is also known as the constitution or the chapter of the company. This character is more or less permanent in nature. The Memorandum must thus be prepared with great care because the company cannot go beyond the limitation of the company act or laid down by the documents.
Memorandum of association must be divided into different clauses . The main clauses of the documents are described below:
1. Name clause:
This is the first clause of memorandum of association .This clause include s the distinct name of the company. the word limited should be written at the end of the company name if it is limited company. If the company is private the word "private limited" should be written at the end of the company name. The name of the company must not be identical with the name of any other company which are in the country.
2. Situation or domicile clause:
This clause includes the name and address of the company and the place where it's head office where the company should be located. The address should be the same as it was mentioned during the registration of the company.
3. Objective clause:
This is the most important clause of the memorandum of association .without any specifics objective no company are established. Therfore,the objective for which the company is formed should be mentioned in the clause. the objective must not be contradiction with the general law of the country. The activities that are going to do now and the plan of the company that it is going to do in the future must be clearly mentioned. This clause gives the scope and direction to the company. but the company can do the activities even that are not specialized in the objectives.
4. Liabilities clause:
This clause mentioned the liability of the shareholders. IT must be mentioned that the shareholders liability should be limited to the face value of the share held by them.
5. Capital Clause:
The authorized capital of the company is mentioned in this clause. It also mentioned the types of share that the company is going to issue. This clause mainly gives the information or it determines the total capital of the company.
6. Subscription or association clause:
This clause includes the names and address of the subscribers to the memorandum of association. The subscribers express their consent in writing to form an association for the purpose of forming a company. There must be at list seven signatory in the case of a private company.
Articles of association:
article of association is also the next very important documents of the company. This documents should attached with the application for registration. The article are the subordinates of the memorandum of association.
These are the regulation and laws for governing the internal affairs of the company. The memorandum lays down what is top be done and the article state how it to be done..
The article defines the mode and manner in which the company's business is to be carried out to achieve its objective as stated in the memorandum of association. It also mentioned the appointments of the board of directors,procedure of holding meetings, transfer of shares, forfeiture of shares ,rules regarding loans, appointment of the auditors, rules regarding the dividend. According to the company act 2053;The following article should be included in the article of association:
• names of the directors and their tenure in the office
• The amount of the minimum subscription by directors.
• The procedure for calling company meetings and notice to be given.
• Special privilege and restriction of preference shareholders
• .Rights and duties of the managing directors.
• provision relating to the remunerating and allowances of directors.
• All the matters mentioned in the memorandum of association
If any change has to be made in the articles of association, these have to be passed by the general meetings, and a notice has to be sent to the office of the company register. Every public limited company should publish its articles within three months of getting the permission of commencement of business. the application of association is applicable to promoters,shareholders,creditors,erc.but not to the outsiders. Therefore the people related to company should have knowledge of the article of association.


Prospectus:

A prospectus is a public notice, circular or advertisement published addressing the public for the purpose of the securities of the company it appeals to public to buy its share and deventure.The prospectus projects a company as good investment opportunities. Hence, it must include the details of performances of date, current worth and future plans.
To protect the rights of the prospectus shareholders, the prospectus must also highlights share transfer and share forfeiture of the company. It prepared and circulate basically to inform the public about the company and stimulate people to invest money in the company. But, the prospectus should never publish any illusive and false information.
The prospectus must be signed and dated by the promoters of the company. A copy of the prospectus must be filled for approval of the office of the company Register. According to the company act 2053;The prospectus should contain the following points;

• The main objective of the company and other important matters mentioned in the memorandum of Association and the Articles of association.
• Minimum number of shares requires to be subscribing to become the Directors and their salaries and allowances.
• Description of cash receipt as remuneration or reward by the promoters of directors.
• Provision relating to bonus shares.
• Provision, if any regarding, reservation of shares fior any shareholders employee or another persons.
• Names and address of the directors and the number of share subscribed.
• Number of the share to be issued to teh general public on par or premium.
• Minimum numbers of shares to be subscribed and advances payment along with the application.
• Brokerage on shares and debentures
• new worth of the company.
• date of opening and date of subscription list.
• The balance sheet and profit and loss account of the company and time and place for inspecting the same.
• details of the underwriting of shares and commission of their earnings.
• Other necessary particulars.

joint stock company

Joint stock company:

A joint stock company has come into existence to overcome the limitation of sole trading and partnership business. the major limitation of sole trading and partnership firms are limited capital and unlimited liability.
A joint stock company is a voluntary association of persons for establishing a business under the company act 2053.joint stock company is the distinct legal person created by law. Its capital is divided into large number of parts with equal value. this parts is called the shares. The company has only the means of collecting its capital by selling its share to the public as well as to the various organization. The persons who hold the share are called share holders.
"A joint stock company is the voluntary association of individuals for profit having a capital divided into transferable shares, the ownership is condition of membership. again a company is the artificial person created by law having a separate entity with a personal succession and a common seal"
The company is managed by the representative's o shareholders they are known as the board of directors. the members of board of directors are elected by the share holders. The company is the corporate body whose life is not connected with the life of shareholders. Hence, the life of the company is is perpetual or permanent. company is also called an artificial person being an artificial person, it affixes a common seal on all office.
A joint stock company has come into existence to overcome the limitation of sole trading and partnership business. the major limitation of sole trading and partnership firms are limited capital and unlimited liability.
A joint stock company is a voluntary association of persons for establishing a business under the company act 2053.joint stock company is the distinct legal person created by law. Its capital is divided into large number of parts with equal value. this parts is called the shares. The company has only the means of collecting its capital by selling its share to the public as well as to the various organization. al documents.teh company distributes the profit in the form of dividend to its share holders on the basis of their share holding.

Features of Joint Stock Company:

The essential features of joint stock company can be known through the following points.

1. Legal personality:

The company is an artificial person which is created by law. it exist only in contemplation of law and,therefore,has no physical shape or form. although invisible and intangible,as a legal person, it enjoys all the rights of a natural persons. it has the right to enter into contract and it can buy and sell properties in its own name. the company can borrow debts and conduct a lawful business. it can sue and sued.

2. perpetual existence:

Being an independent body, the life of the company is not connected with the life of the share holders. the law creates the company and the law itself brings the company into the end. company is the corporate body. in this company the share holders can buy or sell their share to the third persons. but transferable of share never affects the company.

3. Limited liability:
The limited liability is another important features of a company. if anything goes wrong with the company, the shareholder's liability is limited by the amount of shares holding.

4. Representatives of management:
A company is a large number of shareholders who cannot take active part in the management of the company. these shareholders elect their representatives for managing the company. the elected representatives are called directors. The group of directors are called board of directors.The directors of the company are the exclusive representatives of the shareholder's and are responsible for the administration and management of the company's initials affairs. the share holders are the risk bearers and directors are the risks taker.

5. Democratic management:

A joint stock company is a democratic organization. The decisions are taken in the annual general meeting and the board meeting by following the principles of management and of democracy.

6. Transferability of shares:

The shares of joint stock company is transferable except in the case of private limited companies. The share especially of public limited company ,are easily transfer to any body or from one person to another person prior permission of the company management. The shareholders can convert his shares into cash easily either by selling or transferring the share to other persons. The transfer of the shares changes the ownership but does not affect the regular functioning of the company and management.

Meaning and definition of company

Meaning and definition of company

Company Is the most popular form of business organization. An increase in the size and volume of business has made it more difficult for a sole trader or partnership firm to run their business effectively because of lack of resources and technical know-how. Further these two forms of business suffer from unlimited liability as well as absence of continuity of existence. in order to remove these limitations, a new form of business is developed called a “joint stock company”. A joint stock company is commonly known as “company” or a “corporation.”
A company in the common language is a group of people or persons associated together for some common purpose voluntarily. It is an artificial being, invisible, intangible and exiting only in contemplation of law. And in Nepal, companies are governed by Nepal company act,2053B.S. thus, law can create it and alone dissolve it.
A company is a voluntary of the persons formed for the purpose of some business for profit with common capital, divisible into transferability shares, possessing a corporate legal entity and a common seal. it is created by process of law and can be put to an end only by a process of law. It collect capital by issuing shares to promoters and general public Share of public limited company is easily transferable from one person to another persons. The person who contribute money and form the company are called the members of shareholders. The company is managed by the group of members is called ‘board of directors’ elected by the members of shareholders. company is a voluntary association of persons who contribute the work for the profit or who contributes money or money’s worth to a stock and employee for various purpose.
In conclusion, company is the association of members or persons of common interest, a separate legal existence incorporated according to the law, capital divided into transferable share s having perpetual existence and common seal.

The limitation of sole trading concern and partnership firms of organization gave birth to joint stock company. Their two important limitations were limited liability and unlimited liability. Unlimited liability discourages people to invest more, even if they had the capacity of acquiring huge sum of capital. this form is called joint stock company. thus, joint stock company has involved out of the sole trading and partnership of the business organization. joint stock company is recognized by law as an artificial person having perpetual, continuous, and uninterrupted existence. in joint stock company the member may go or come but the company will run for ever. Transferability of shares of the company gives perpetual succession to it. A company is owners by the share holders and managed by the directors, elected by the share holders of the company.
joint stock company is a voluntary association of individuals for profit, having a capital divided into a transferable shares, the ownership of which is the condition of membership. Company is the artificial person recognized by the law with the particular name, a common seal, a common capital comprising transferable shares of fixed value carrying limited liability and having a perpetual succession.
Types of joint stock company:
All types of company and the business has different types. here the classification are described:
the companies are classified in the following way:
1. according to corporation
2. According to liability.
3. According to numbers of members.
According to corporation:
According to incorporation the company can be divided into following three categories:
 chartered company:
this types of company are incorporate under royal charter issued by king or head of the state.Under the charter,certain exclusive rights and privilege are granted to the company for under taking certain commercial activities. the East India company, The chartered bank of india and the Australia were incorporated under charter these companies are longer formed in any country
 statutory companies:
these companies are formed under the special act o parliament. A parliament passes special act to form such company .in this act all the rights, power and responsibilities are clearly defined . when companies requires the special rights and power these type of company are established. Generally, companies for public utility services are formed.
 register company:
In general companies are established under the company act of the country that are implemented or the country concerned. These types of company which have to be registered before starting them in the company register office under some act and rules is called the register company: The Act contains the provisions with regard to establishment, management, dissolution

Business Management:introduction,characteristics

Introduction:
Itself the word "management" gives the clear meaning that it is the study, knowledge about different field.many person who have involved in the business sector are getting success because of good management system.

In this modern age management has became one of the most important part of life.Not only in the business field it is needed in every where.so good management leads to have the good knowledge and information.it is the factor of production and the self satisfaction.director and managers who have the power and responsibility to make decisions to manage an enterprise.as a discipline,management compares of interlocking functions of formulating corporate-policy and organizing,planning,controlling,and directing the firm's to achieve the policy's objective.due to the good management system many persons and the job holders are ranked in various post.

Meaning of business:


The meaning of business is very vast that one cant define it clearly.but the word literally means 'a state of being busy'.All the human being are engaged in various types of activities,producing various product or acquiring wealth that are mainly to earn wealth.essentially all the socially desired to earn the the profit, retail business management has the main aim to satisfy all the demands and desires of the human beings.so it became necessary to fulfill all the necessary wants and desires of the human with the help of establishing new industries and factories under retail business management system.functionally,business management is the way of activities that are involving in producing,purchasing of good s and services.

In conclusion,we can define business in the following way that is"business involve all the activities of selling producing and exchange perform to provide every kinds of needs and demands of the individuals with an equitable adjustment of profit and public welfare.

CHARACTERISTICS OF BUSINESS MANAGEMENT

After we establish our business we always look about the profit. how we can earn profit is the main question in business?good management of the business certainly leads the company business at the top level.if we follow the following things then we can get the good management and good business results.Good investment done in the company will help to sustain the good profitability.

Here are some point to have a good business management and to determine the good position of the business:


Reiterate sales

There are many ways to guard against the sudden loss of the business.among them the one way is to employ a recurring business model.there are many general facts and example of them that are consumer service,subscription media,

like we the television cable and broadcast the internet and so on.all the business generate a lots of revenue from the consumer annually and monthly.there we can see lots of business that are particularly compute win business and after they got them they start to sale the same customers again.

GET MORE INFORMATION ABOUT MANAGEMENT CLICK HERE