Basics of enterprise - class-XI

A royal charter is a formal document issued by a monarch as letters patent, granting a right or power to an individual or a body corporate. They were, and are still, used to establish significant organisations such as cities (with municipal charters) or universities and learned societies.

According to President Roosevelt,- “It is clothed with the powers of the government but possessed of the flexibility and initiative of a private enterprise.” Public corporations are free to take quick decisions which is very necessary for the success of a business concern. There is no government interference. There is no rigidity in their working as in case of departmental undertakings. The flexibility is necessary in the case of business undertakings. Its management is vested in a Board of Directors, appointed or nominated by the Government. But there is no Governmental interference in the day-to-day working of the corporation.

The subsidiaries remain private. They are private subsidiaries of a public company. 

Companies borrow from various sources like banks and various other financial institutions. Whereas,Public Limited Companies borrow from mass public by accepting public deposits.

A private limited company with a minimum of only 2 members (and maximum of 200), as per the provisions of the Companies Act 2013. Limited liability: The liability of each shareholder or member is limited.

Big business involves large-scale corporate-controlled financial or business activities. As a term, it describes activities that run from "huge transactions" to the more general "doing big things".

Big business involves large-scale corporate-controlled financial or business activities. As a term, it describes activities that run from "huge transactions" to the more general "doing big things".

Minimum 2 and maximum 200 members: A private company can have a minimum of just two members(but just one is enough if it a One Person Company), and maximum of upto 200 members. Transferability of shares restricted: Private companies cannot freely transfer their shares to the public like public companies.

A company is any entity that engages in business. Companies can be structured in different ways. For example, your company can be a sole proprietorship, a partnership, or a corporation. Depending on which different type of company you're dealing with, it may be owned by one person or a group of people.

Salomon v Salomon & Co Ltd [1897] AC 22 (law cite link) was the case that got me interested in corporate law. The principle from the case is very simple - a company is a separate legal entity and thus a juristic "person" in the eyes of the law. Piercing the corporate veil refers to a situation in which courts put aside limited liability and hold a corporation's shareholders or directors personally liable for the corporation's actions or debts. Veil piercing is most common in close corporations.

Privacy Issues in the Workplace. Generally speaking, privacy rights are granted (if at all) by specific laws, rules, or regulations. Personnel Records:Employees generally have a right to privacy in their personnel records, except in a few specific circumstances. Employee privacy rights are the rules that limit how extensively an employer can search an employee's possessions or person; monitor their actions, speech, or correspondence; and know about their personal lives, especially but not exclusively in the workplace.

The Companies Act, 2013 earlier mandated that all Private Limited Companies have a minimum paid up capital of Rs.1 lakh. This meant that Rs.1 lakh worth of money had to be invested in the company by purchase of the company shares by the shareholders to start business.

Premises that are outside the control of a business enterprise are referred to as non-controllable or external environmental factors.

This type of entity limits the owner's liability to their ownership stake and restricts shareholders from publicly trading shares. Members: You can start a private limited company with a minimum of only 2 members (and maximum of 200), as per the provisions of the Companies Act 2013. Minimum 2 and Maximum 20 can only be a part of partnership firm while for private limited company, 2 to 50 members in case of Private Company and Minimum 7 members in case of Public Company can be a part and in LLP's there has to be minimum 2 partners and there is no limitation of maximum number of partners.