Business Agreements and Applications
Business in economy is a place that has only one intention – to introduce, educate and help you learn about new business activities. Using the right Business Agreements and Applications will help your business thrive.
Main purpose of this site is to educate everyone in a business way from the very beginning. Each individual is the forger of his own destiny that can be successful or a little less successful. Because of that we will try to help everyone to expand their own idea on the way to profit.
There can be three business plan that can suits your needs:
1. One-day business plan (Quick Business Plan)
This is a basic plan produced in a short time (sometimes in one day). You can create quick business plan if you know your business well, do the necessary research about business and can make financial projections in a short time. Quick plan is appropriate only if your business idea is very simple or someone has already committed to backing your venture. Usually, the basic information is not enough for lenders and investors to make a decision. Most busy backers will turn down a proposal before they will ask for more information because they prefer a deluxe version with all the extras to a stripped-down model.
2. Complete Business Plan
Complete plan is very helpful for people who are starting a new business. It is also excellent for convincing prospective backers to support your business. You’ll be more successful in raising the money you need if you answer all of your potential backers questions.
Customized plan is a plan that have components from both quick and complete plans. Here, writer decides what part will include and what exclude.
You want to write a letter of enquiry, offer letter, order letter, order acknowledgement letter, letter of complaint or letter of adjustment or some other type of business letter – here we explain how you can do that properly without errors.
Also we offer you to see most common opening, body and closing phrases to make your letter more appropriate for business audience.
Types of Economies – Economic systems
Economic systems set the rules. These rules influence what is produced, how it will be produced and for whom. Decision is always made by state or market.
Controlled, planned, centralised or even called command economy appear if the state makes economic decisions, controls the economy and plans what goods and services the country needs. This type of economy is very rare today.
On the other side there is unplanned economies, free market economies, free enterprise or laissez-faire systems is economies where everything is left to the market. This type is also very rare today.
And last but the most important is mixed economy. It a mixture of a unplanned and planned economy (Tile quantity, quality, prices of goods and services are left to the market, and state
determines the production of some goods and services).
Types of Economic Activities
Economic activity of each country can be divided on three sectors: primary, secondary and tertiary.
Primary sector involves extracting natural resources; raw materials for use in the manufacturing process. Examples of primary production are mining, forestry, fishing and agriculture. In most
countries this business activities are on decline.
Secondary sector involves the processing of raw materials into manufactured products; fruit into juice, wood into chipboard, metal into cars etc. Traditional industries like engineering are on the decline but high-tech industries like electronics are growing.
Tertiary sector business provides services; insurance, trade, legal advice, advertising, etc. These days, service industries growing dramatically.
Types of Businesses
Basic thing about business is to know two main types: Private and Public Sector.
It includes sole proprietorships, partnerships, joint stock companies (Private limited companies, Public limited companies) and other forms of businesses such as franchises.
Sole proprietorships is form of business that is very easy to organize. In sole proprietorship, owner usually works in the firm and is in control of the business. Owner can employ workers to work for him
and he receives all income. One very bad thing for sole proprietorship is that he is totally responsible for the losses and debts with whole his personal possessions and that is called unlimited liability. For this form of business there is no special legal documents needed but it is very difficult to compete with large firms. Most common sole proprietorships are tourist industry, plumbing, hairdressing etc.
Partnerships are unlimited liability businesses with at least two partners who contribute capital to the business and share the profit. There is no special legal requirements and the future business partners are advised to draw up a legal document called a deed of partnership.
Deed of partnership covers from who provicies the capital, controls the business to how to distribute the profits. This type of business is common in professions undertaken by doctors, architects, accountants, solicitors, etc.
Private limited company (sign: Ltd) is usually small or medium-sized company with the shares held by their owners. Usually owners are members of the family (minimum number of members are two and maximum fifty).
Private limited company cannot offer their shares for sale to public, only to people that they approve. Shareholders chooses to take or not take part in the running of the business because board of directors is appointed to run the company (they are shareholders who run a company). Minimum share capital to start with is 2£ ($4,1). Also two legal documents are necessary and that is “Memorandum of Association” and “Articles of Association” and they are send to the Registrar of Companies (with that act Ltd have permission to trade).
Public Limited Company (sign: Plc) have a minimum of two members and maximum is unlimited, a share capital of at least £50,000 ($102,500) and can offer shares on the Stock Exchange. Shareholders, that own a public limited company, appoint directors of the management. The company acts a “Certificate of Incorporation” and advertises its new shares for sale or sells them to pension funds, insurance companies and other big financial institutions.
Franchising is is a form of cooperation – usually between a big company and a sole proprietorship. It is a business in which a big
company (franchisor) sells an individual (franchisee) the rights to run a business using the franchisor’s established system. The advantage of this type of business is that franchisee takes full advantage of the franchisor’s reputation, experience and brand name. At the beginning the franchisee must put up the necessary capital to open the business and is under contract to pay an initial sum of money – franchise fee (front end) as well as management service fee (a percentage of the annual turnover) to the franchisor. According to the contract, the franchisor provides an “Operations manual” which is a document containing all the information the franchisee requires in order to manage the business.
It includes various forms of industries that are run by the central government or by local authorities. Most common public sectors are Public corporations and Municipal enterprises.
Public corporations are owned and financed by the central government. Board of Directors
has been appointed by government minister who is responsible to Parliament. A government set goals, gives large sums of money if there is losses. We can almost said public corporation in past tense because with privatisation most of them transform into public limited companies.
Municipal enterprises are run by the town, city or country councils and include services like transport, agriculture, faculties, market halls, libraries, airports, health, cementaries, car parks, lotteries. Many of this services slowly but efficiently will become a private business services.
Entrepreneur vs. Manager
Word entrepreneur is synonym for success, lot of money, independence. There is no recipe for success. Maybe it is being in the right place at the right time but surely being innovative and steady will help you gain success. As entrepreneur, you start from scratch, set up a small business, do paperwork that is necessary for running it and work hard at day and at night to put that business in prospective position. Entrepreneurs will have a lot of problems (some of them more, some less) they will have to struggle with high taxes, lose and get or get and lose money over the night. Entrepreneurs trusts their own inner ear and make quick and good decisions. After their company start getting more and more money, they have to be occupied with the management of the business, they need assistance, appoint managers and delegate much of theirs day-to-day responsibility to managers.
Managers are a part of a business organization system, having jobs in planning, organizing, supervising and measuring the performance of the
company. Managers work on the detailed day-to-day operations, set objectives, allocate resources, choose a specific course of action. Choosing the right person for the right job, staffing, is one of their responsibilities. Being good at communication and motivation helps them in directing, training and motivating their employees. In the end they evaluate how well company objectives are being met. Entrepreneurs risk their own financial resources in settings up their firms, managers do not.
Positive and negative trends involving entrepreneurs between 1980. and 1990.
1990. was a bad year to be an entrepreneur. Business failures were up. Sales were down. The outlook was poor, and credit seemed impossible to come by. As the economy slipped toward recession, small business owners started to spend less money. The loose lending led to the savings-and-loan disaster. It caused anxiety among bankers and eventually tightened standards. Small businesses, which had developed into great job generators during 1980s, slowed their hiring plans. Some even had to lay off workers and some closed their doors entirely. Things were tough for a while, but nine years later, the 1990s and turned out to be one of the brightest periods in history for entrepreneurs. The extraordinary upturn created vast individual and corporate wealth. This made it much easier for entrepreneurs to obtain seed capital to start their own firms. At the same time, the downsizing of giant corporations pushed many senior managers onto the street and gave them the idea to break out on their own. Lots of talented people who didn’t expect to be fired were fired. Aided by fat redundancy packages they had lots of money. Those people would never have started their own companies without the push out of the corporate door. The economy pulled itself out of a brief recession and went on through the longest expansion in U.S. history. It was boosted by low interest rates and low inflation and by a federal budget surplus unforeseen by anyone in 1990.
Women’s role in management – Equity and Complementary model
It assumes that men and women are similar. It prevails in the United States. In equity model women are assumed to be identical, as professionals, with men and therefore equally capable of contributing in ways similar to men. Primary question in this model is access. Important is that women assimilate in male dominated world: they are expected to act, dress, and think like men. Effectiveness is then measured against male norms.
Complementary model assumes that men and women call offer complementary talents and abilities to management. It prevails in Europe. It is based on the
assumption of difference, not similarity. Here women are assumed to differ and therefore to be capable of making different but equally valuable contributions to the organization. Female managers are expected to act, dress, and think like women. Their behaviour is similar to that of men but also differs in many important aspects. Progress here is measured in qualitative terms: how much the organization allows, encourages and rewards men and women for making and building synergy.
Women in management – general
Women represent over fifty percent of the world’s population, in no country do women represent half, or even close to half, of the corporate managers. Many of the constraints women face are quite similar around the world; nevertheless, the relative importance of each limitation varies very much from society to society. Women in Japan and Saudi Arabia, for example, may focus on cultural patterns when explaining the situation with regard to female managers, whereas American women may look primarily to the laws and regulations, and Chinese women in Singapore and the People’s Republic of China may emphasize current economic conditions and political leadership.