Company Fundamentals: A Comprehensive Guide to Business Structure, Operations, and Growth
1.Concepto and elements of the company.
• It is an organization that buys Ylos factors transformed to produce goods or services (corporations insustrial), or buy products and sell them at a higher price (commercial enterprises) or sell services (utilities).
Elements that make up this definition:
“Buy and use factors of production.
– Make efforts to production.
– Its goals are: to maximize profits, growth or value maximization.
– Coordination among members
– Sells its products in the market.
· The elements of a company are: a) HUMAN
1.Propietarios capital and partners, provide the necessary capital to start business
2.General or managers: manage the business
3.Work or employees, offer their labor and knowledge.
4.Grupos experts: customers, suppliers, financial institutions, etc.
b) HERITAGE:
1.Elementos materials: financial assets of the company
Non-Current Capital: remain with the company more than one fiscal year. Example: machinery.
– Current Capital: renewed during the fiscal year.
2.Elementos intangible assets: patents, trademarks, software, etc.
Financial 3.Recursos:
– Rights of the firm: what should the company throw in installments
– Rights and obligations: what should the company We Buy Installment / loans
c) ORGANIZATION
The operation of a business as an organization is based on 3 factors:
1) A common purpose (profit)
2) The combination of individuals and groups within it.
3) relations system that divides the functions and tasks.
2. Distinguishes between general and specific environment.
Explain the factors that comprise it.
• In the general environment are factors outside the company and affect their performance.
The factors are four:
“Economic factors:
-Level development zone
-Tax level
– Monopolistic market
-Availability of other skilled labor, etc.
“Technological factors:
Spirit predisposed to research
“Political-
legal factors:
Interventionist government
“Social factors:
-Educational level
“Attitude at work
• In the specific environment, consists of a set of factors that influence on a sector or industry (group of companies with similar characteristics).
These factors include customers, suppliers, competitors and financial institutions.
Explicalas functional areas of the company
To coordinate the elements that make up a company, this is divided into a number of areas that are coordinated to achieve the objectives.
“The areas are:
HR 1.De àorganiza and manages the company staff.
2.Product à aprovisamiento of raw materials and their transformation into goods.
3.Comercial to market and distribute the product.
4.Inversora and financial àcapta designed covers and investment policy.
Cooperation 5 and strategy to guide future activity.
4. What are the objectives of the company?
• Target basic: MAXIMIZING PROFITS
Homepage More: 1. Profitably
2.Crecimiento and market power
Environmental 3.Objetivos -> Respecting the environment
Social 4.Objetivos-> Corporate Social Responsibility.
Distingue between privately and spcial costs
Only affect the private costs in the company, are reflected in the accounts and transferred to prices, while social costs are the costs of the extremities.
6. What is a code of ethics?
What about a social balance?
– A Code of Ethics are rules of conduct to be regulated the individual comportameinto both inside and outside the company:
“Do not hide the dishonesty
-Compliance with Laws.
“Honesty and integrity in dealing with customers and employees.
“Do not make proper use of confidential information.
“A social balance is a technique for collecting quantitative and qualitative information to assess the development of the activities of the company and its social impact, focusing on social and ethical aspects.
Provide information on:
– The social-> contains reports perriodicos areas of interest for the social partners.
– Company Management -> Report astisfacción degree in the following areas: dalud, safety, knowledge and freedom
– Indicators subject -> represent the opinion of all social spheres.
7. What are the basic functions of entrepreneur?
The functions of the employer characteristics can be grouped into two:
· Those who believe that the economic role of the entrepreneur is characterized by risk taking and the prestige of the company.
· Top estimate that the main function is to control policy and the economic process.
8.Explica 6 factors to locate a business.
Location of the trading company and service:
Factors to consider:
Local visibility
Communications facility (metro, bus …)
Sidewalks Transit
Local well decorated
Areas with complementary activities
Also:
People’s purchasing power
Consumption habits of the population
Hypermarkets and department stores are sometimes located in the periphery in order to get the lower price of land, and good communication channels
9.Clasifica companies by sector, ownership of Captal, the area in which they operate, the size or legal form.
a) According to the sector, “Primary
-Sub
Tertiary
b) According to the ownership of capital, “Public
-Private
-Mixed
c) Depending on the size, “Micro <10
-Small <50
-Medium <250
– Major> or = 250
d) The scope of “Multinational” matrix
– Subsidiary
-National
-Regional
-Local
e) According to the legal form “physical Personality
– Legal personality
10.Distingue between:
a) Specialization and diversification
“Specialization is when companies extend their product line offered more of the same and trying to cover the entire range of specialization. This related to horizontal integration.
“Diversification is when companies offer new products or services other than traditional and thus gain access to new market segments. This growth strategy is related to vertical integration.
b) internal and external growth.
“Internal growth is one in which firms increase their size gradually relying on their investments and business strategy of expansion.
“External growth is when companies grow in a non-gradual due to operations with other companies.
c) Merger and absorption.
“The merger is when is when several companies are joining losing all their legal personalities to create a new company.
“Absorption is when several companies are joining, some disappear while another maintains its legal personality, incorporating the other in its structure.
d) Holding, trust and cartel.
-Holding, a company that controls the activities of others through ownership of all or a significant portion of their shares. The company is usually devoted to various activities.
“Trust is a group of companies whose activities are controlled and managed by another company. The goal is to master the vertically integrated production process.
“Cartel is a formal agreement between companies in the same sector, whose purpose is to reduce or eliminate competition in a given market.
e) Individual and corporate.
“An individual is a member of the human species capable of acquiring rights and obligations.
“An entity is any entity with the capacity to acquire rights and incur obligations and other than a natural person.
f) commercial companies and corporate interest.
“The corporation is formed by several people that they have a common capital fund to assist in operating a business, for the purpose of making a profit and participate in the distribution of profits.
In commercial companies can distinguish between: partnerships and limited liability companies or capitalists.
“The corporate social interest are a class of companies whose primary objective is not so much to achieve a profit, but the common needs of its members.
g) nominal value, effective action and theorist.
“The nominal value of a share is the value of each share, which appears in the title or entry form. If the social capital of the company is calculated by dividing the capital between the number of shares.
Nominal value of share = share capital / number of shares
“The actual value of a share is the market value at the time of sale of a stock. The actual value depends on its price, ie supply and demand, and usually does not match their face value. There can be three possibilities:
· Share price over par. When the actual value of a share is more than nominal value.
· Share price at par. When the actual value of a share is less than face value.
· Share price below par. When the actual value of a share is less than face value.
“The theoretical value of a share is the value of the action according to various objective criteria. Technical accounting value is expressed as the ratio of net worth and number of shares.
Book value = Equity / Number of shares
How can a company grow internationally?
Internationalization: when the company believes that the domestic market is sufficiently mature Due to stiff competition, there is the achievement of growth through international markets. For internationalization abode frequently raised the following:
-Open sucirsales: are subordinate to the principal but have some autonomy.
-Creating subsidiaries: the capital belongs to the parent, but the subsidiary has the legal form itself.
-Create Joint Venture: creating companies with partners from different countries provide some kind of expert knowledge. Each partner participates through companies that have legal personality.
4 12.Cita and explains differences between SA and SL
Corporation:
1.Social divided into shares.
2.Capital minimum: 60,101.21 Euros, paid at least 25% per share
3.Shares: Nominative or bearer or book entries.
Capital 4.Aumento compensation claims: 
The credits must be overcome liquidated by 25% and the rest in 5 years. A report from the directors and auditors.
Limited Partnership:
1. Capital divided into shares without character values.
2. Capital 3.005,06 Euros minimum paid in full.
3. Shares of a nominative.
4. Increased capital by offsetting credits: The loans must be fully liquidated A report from the administrators
13. What is a working society? And a cooperative? How do they differ?
“A worker-owned company is a corporation or limited liability company in which the majority interest is owned by the workers who provide services restribuidos it personally and directly and whose employment is of indefinite duration.
“A cooperative is an enterprise belonging to the beneficiaries of their activities. Is formed by a group of people who associate for economic activity beneficial to all parties. The financial results denominated surplus partners will sign on once served the community funds.
“Between these two types of companies the big difference is the capital and labor in society is attributed to the workers directly, while in cooperative capital attributed to the funds first and then community members or workers.
14. Rights under the shares to the shareholders.
-Right to vote at general meetings. The most important decisions of society are taken at the AGM by vote of the shareholders, ie determines the policy of the company.
“The right to dividend. Participate in profit sharing have been agreed at the AGM. These are the dividends assets.
-Right to participate in the settlement fee. Happen when the company’s shareholders are entitled to participate in the distribution of goods and rights arising after satisfying all debts of the partnership.
-Right-emptive. If the shareholders approve a capital increase, existing shareholders have preferential rights to participate in this extension and can sell this right in case of not wanting to exercise it directly.
-Right to information. A shareholder is entitled to receive prior information needed, recognized by law in order to cast an informed vote at the AGM.
15.Causas of dissolution and liquidation of an SA
Pursuant to the Corporations Act causes of dissolution and liquidation are:
“By agreement of the General Board.
-Compliance with the time set in the statutes.
-Conclusion of the object or manifest inability to perform social or cessation of the corporate bodies, which make it impossible to fincionamiento.
-Reduction of equity to less than half the share capital, provided it does not increase or decrease in the amount sufficient.
“By merging or total excision of society.
“By reducing the capital below the legal minimum.
“For any other reason established by the statutes.
16. What is the AGM in SA? What kinds do you know?
“A General Meeting is the governing body expressing the will with its social arrangements. Is defined as stockholders’ meeting duly convened to deliberate and decide by majority on social issues within their purview.
-Types of joints:
· Shareholders General Meeting, which must be held within six months of each financial year to review the management, approve the accounts for the previous year and decide on the application of results.
Special · Board, which shall be convened by the administrators, as they deem appropriate for the corporate interests or when requested by a number of shareholders owning at least 5% of capital.
The call should be made by notice published in the Official Gazette of the Register and in one of the largest newspapers in the province a month before the date fixed for the holding of the meeting.
· Board Universal. When present the entire share capital and attendees unanimously agree is holding and the business to be in it.
17.Aclara with an example what is a subscription right.
When the company makes a capital, gives shareholders a preferential right to subscribe new shares so that they can keep the same amount of capital they possessed before the capital increase. The subscription rights is economic value and shareholders can opt to buy new shares or sell the right to subscribe, as compensation for the loss of power gets to the capital. In any capital increase, the company must specify the relationship between new and old shares.
-Example: For every three older can buy a new one.
18.Cita 5 characteristics of cooperatives.
“They have legal personality.
– The liability of partners for the debts of the cooperative is limited wing nominal amount of their capital contributions, but the articles of association may determine other liability, which may be limited.
– National rules, autonomous communities within the scope of its powers, have their own legislation for cooperatives.
– Grant writing before a notary and registration with the Registrar of Cooperative Societies.
– On the fiscal side the main difference with respect to cooperative corporations, lies in the possibility of a series of tax relief.