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Companies. Types of companies. Company performance
1. Companies
2. Questions to be considered
Types of companiesCompany performance
3. Types of companies
CommercialNon-commercial
The ultimate
goal is making
profit
Companies are
created for social
purposes
4. Commercial companies can be also involved in social activities through charity but this is not their core business
“ Commercial companies can be also involved insocial activities through charity but this is not
their core business
We will mainly concentrate on commercial organizations.
”
5. According to the type of ownership in the UK there are distinguished the following types of companies:
Sole traderLimited company
Partnership
6. Sole trader
o One person sets up and runs thecompany
o Provides all the capital and has unlimited
liability for business debts
7. Limited company
The capital is divided intoshares, which are held by
shareholders.
Private limited company
Limited company
Public limited company
• All shareholders must agree before • Shares are bought and sold freely,
any shares can be bought or sold.
for example on the stock exchange.
8. Partnership
Unlimited partnershipLimited partnership
– if the business fails, they are
fully liable for all debts, and may
even have to sell personal assets
– there can be sleeping partners who
do not participate in management of
the company
Sleeping partners have
limited liability
9. We can distinguish companies from the point of view of their scope
10. Companies can operate:
• locally (on a limited territory or in a certain region),• nationally (within one country),
• internationally (in a number of countries).
The latter are called
multinationals. It usually takes
much time to become a
multinational company.
11. Company performance
Managementcan depend on the
following things
Stimulation
Team spirit
&
Corporate
culture
12. Methods for assessing the effectiveness of the company
o Clippingo Rumours and talks
o Visiting open press events
o Industrial espionage
o Referring to documents
13. Summary:
o Management accounts provide data about operationalefficiency.
o Financial accounts give information about financial
performance of a company.
o A company financial affairs are presented in a annual
report.
o A company should regularly evaluate how well they are
performing to foresee the possible problems and
undertake the necessary measures in advance.