Business Management Techniques Report

Running head: BUSINESS MANAGEMENT TECHNIQUES
BUSINESS MANAGEMENT TECHNIQUES
Name of the University
Name of the student
Author notes

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BUSINESS MANAGEMENT TECHNIQUES
Table of Contents
Assessment 1..............................................................................................................................2
Assignment 2............................................................................................................................11
Assignment 3............................................................................................................................13
Assignment 4............................................................................................................................15
References................................................................................................................................19

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BUSINESS MANAGEMENT TECHNIQUES
Assessment 1
Question 1
As an inventor does not have any legal right to raise capital directly from the general
public so it can not raise fund for the development of his product. where as a public company
has the legal right to raise fund directly from the public and can utilize the fund for the
development of the product. The inventor has to form a public limited company and then
raise fund from the public to make development in its products (Lu 2016).
Question 2
Before taking the decision of setting a new plant for car manufacturing a Japanese
company will mainly consider the labour cost that it has to pay for carrying on its operation
in United Kingdom. If the Japanese’s company found that its is possible to get skilled labour
at cheap price then it will be easy for them to take the decision. In addition to that the
availability of the raw materials is also required to be verified, if the raw materials required
for the construction of the car. If there is unavailability of raw material then the Japanese
company may have to import raw martyrial which may attract import duty on bringing raw
materials from japan. For this reason, the company has to check whether the government of
UK will give any relaxation in the import duty or not (Oats and de Widt 2019).
The Japanese company has to analyse the market to understand the competitive ness
in the British market and the demand of the cars among the consumers in Britain. In addition
to that the Japanese company should also consider the availability and price of land in Britain
where the company will set the factory.

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Question 3
List briefly the actions required to form a public limited company
To form a public limited company as per the UK law and some commonwealth
jurisdictions. The public limited companies are also considered as limited liability company
the minimum share capital of the company will be 50000 and the shares should be sold and
traded freely in the recognized stick exchange (Ahmad Kodwani and Upton 2016).
A public limited company should add the words PLC after its name. although some
public company are formed under the special legislation and these organizations are excluded
from the obligation to affix the word PLC after their name.
The PLC’s that are established in the in Britain are require to register with company’s
house which is an agency of the department for business innovation and skills. It is essential
to have minimum one director to get the status of public limited company. There are some
eligibility criteria to become the director of a public limited company, such as the director
should not subject to a restriction order for bankruptcy, or the age of the director should not
be more than 70 and less than 16 (Halbouni and Yasin 2016).
The members of the PLC’s should not hold the entire number of shares and should
give there consent to sell some part or all the shares at the time of its registration. the blame
of all the members of the company should be mentioned in the memorandum of association,
who have purchased the shares of the company and the number of shares purchased by each
member should also be mentioned in the MOA. These members who agreed to purchase the
shares are considered as subscribers and the shares are classified as subscribed. The public

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limited company will allot shares the minimum b\value of which should be 50000, and the
quarter part of which should be fully paid up.
A memorandum of association has seven parts thee are name clause, registered office
clause, objective clause, object clause, liability clause, capital clause and the association
clause. The MOA is a legal paper that is essential for setting up a public limited company.
The main purpose of the MOA is to briefly describe the relationship of the public
limited company with its stakeholders. The MOA is considered as the constitution of the
organization. The public limited companies that are situated in United Kingdom requires
MOA.
Name clause
The name clause contains the proposed name of the company the following points are
included in the name clause
The name must end with the suffix limited it is a public company,
There should not be similarity with the name of any other company
It can not allude to the newly formed organization that is doing the business of a company
that is already doing business.
The name should not be misleading in any sense.

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Registered office clause
The clause of the registered office states the name of the province or state where the
organization’s registered office is situated. The main points that are included in the registered
office clause are stated below:
From the physical location of the company it will be possible to know that under
which jurisdiction of the registrar of the company will fall and under which court the legal
matters of the company will be judged.
The company’s residential status is also mentioned in the memorandum of accounts.
The full address of the registered office will be mentioned in the MOA.
Objective clause
The objective clause is considered as the most imp [orthant clause of the memorandum of
association
The objective clause contains the limits and scope of the operations of the company
It specifies the area of activities of every member of the company and states that in
what way the capital of the members will be utilized.
The object clause provides various clauses which will protect the fund of the
shareholders and provides the guidelines that are to be used to utilize the funds for the right
purpose in order too o prevent the misutilization of the funds (Oats and de Widt 2019).
Object clause

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The object clause is used to explain the reason for the formation of the company. It is
not legally possible for the company to do any kind of business that is not specified in the
object clause. The following points are included in the object clause:
After its incorporation what type of business will it do should be listed in the object clause
The incidental objects that will be required to do the main object
Other objects that are not mentioned in the main object.
The object should be legally viable
The objects should be made in such a manner that it can protect the interest of the public.
The clause should not contain anything that is against the law of the country.
Liability clause
The liability clause provides the details of the total capital that is raised by the
company. This is also known as the authorized capital. Companies are not allowed to
generate money which exceeds the amount that is mentioned under the authorized capital.
The process by which the company will be divided into the equity shattered capital and the
preference share capital is also required to be mentioned in the liability or capital clause. The
number of shares that the company keep in the equity capital and the preference shares are
also required to be mentioned in the memorandum of association (Caramanis and BU 2018).
Association clause
The association clause describes that any member of the company who is authorized
to sign at the end of the memorandum of association will be associated with the organization
that is formed by then organization. In case of a public limited company the MOA should be

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signed by at least seven people. In case of private company, the memorandum of association
should be signed by two members. The signatures should be made in the presence of a
witness. There should be third party who will be present as a witness and the members will
not be allowed to act as witness. the address and occupation of every subscriber and the
witnesses must be they’re in writing (MAHESHWARI and MAHESHWARI 2016).
The purpose or objects clause or the clause number 3 is the most essential clause of
the memorandum as with out the object clause it will not be possible to set the busies as the
object clause contains the details of the operations that the company will do. If the operation
of the business is not clearly mentioned then the company will be legally void and it will
north be possible for the company to carry on operations (Sukalkar and Warkad 2017).
Question 4
Oil company
If an oil company merges with another oil company then both the companies can
enjoy some benefits of working together. In the oil industry highly, advanced infrastructure is
essential so the company which has advanced infrastructure facility can provide assistance to
the company which does not have highly advanced infrastructure facility. In addition to that
oil company requires huge amount of funds and resources that is essential to carry on the
operations without having any obstruction (Labro 2019).
Clothing retail company
By merging or taking over another company in the clothing retail company one the
major benefit one company can avail is that by acquiring another company it will be possible
for the acquirer to capture the market and customer base of the acquired company and taking