Although they originated as contractual associations, they are now governed in most countries by special legislation and not by the law applicable to companies or corporations.
Anyways, these are the common methods that business organizations us to influence government policies. The similarities between business and government are not easily recognized at first. When a group of Athenian or Phoenician merchants pooled their savings to build or charter a trading vessel, their organization was not a corporation but a partnership; ancient societies did not have laws of incorporation that delimited the scope and standards of business activity.
A government can also own businesses or corporations to increase its assets. On the other hand, business is more associated with trade, occupation, commerce, and transactions that involve the profit making of a particular person or industry.
The first corporations were towns, universities, and ecclesiastical orders. The head of a business is traditionally the owner or entrepreneur, unless another body dismisses the owner for various reasons.
Governments and businesses are also classified as social institutions that benefit society in general as well as its members.
If they do not, the assignee is merely entitled to receive the financial benefits attached to the share or interest without being able to take part in the management of the firm, but neither is he personally liable for the debts of the firm.
English law also distinguishes between private and public companies for some purposes of company law; for example, a private company cannot have more than 50 members and cannot advertise subscriptions for its shares. For maintaining a steady and upward economic growth The Government must try to make the environment for business organizations suitable.
Limited-liability companiesor corporations The company or corporation, unlike the partnership, is formed not simply by an agreement entered into between its first members; it must also be registered at a public office or court designated by law or otherwise obtain official acknowledgment of its existence.
In a planned economy or even in market economy government holds control of shaping the business activates of a country. Preference shares are so called because they are entitled by the terms on which they are issued to payment of a dividend of a fixed amount usually expressed as a percentage of their nominal value before any dividend is paid to the ordinary shareholders.
Such limited partners are prohibited from taking part in the management of the firm, however; if they do, they become personally liable without limit for the debts of the firm, together with the general partners. Therefore, while in fact and in law corporate businesses are private enterprises, their activities have consequences that are public in character and as pervasive as those of many governments.
The first feature, plurality of membership, distinguishes the business association from the business owned by one individual; the latter does not need to be regulated internally by law, because the single owner totally controls the assets.
These works in another way around, where the government tries to implement the policy to attract foreign investment.
For a long time, both in Europe and in the United States, the corporate form was regarded as a creature of government, providing a form of monopoly. The third essential feature, a system of managementvaries greatly.
Incorporation of business enterprises began in England during the Elizabethan era. Alexander Hamiltonthe first secretary of the treasury and an admirer of Adam Smithtook the view that businessmen should be encouraged to explore their own avenues of enterprise. The essential features of these associations are that they provide for the small or medium investor.
These codes always make manufacturing, dealing in, and transporting goods commercial activities, while professional and agricultural activities are always noncommercial. Business Governments and businesses are two different entities that exist in society.
Preference shares are not common in Europe, but under German and Italian law they have the distinction of being the only kind of shares that can be issued without voting rights in general meetings, all other shares carrying voting rights proportionate to their nominal value by law.
Because the single owner is personally liable for debts and obligations incurred in connection with the business, no special rules are needed to protect its creditors beyond the ordinary provisions of bankruptcy law.
Government is also often associated with the State.
In only France and Italy are there special rules governing such associations; in the United Kingdom and Germany they are subject to the ordinary rules of company law. But, while British investors accepted the regulations inhering in their charters, American entrepreneurs came to regard such rules as repressive and unrealistic.
A similar development occurred in France and parts of what is now Germany. The accumulation of arrears of preference dividend depreciates the value of the ordinary shares, whose holders cannot be paid a dividend until the arrears of preference dividend have been paid.
The role of a member of a company or corporation is basically passive; he is known as a shareholder or stockholderthe emphasis being placed on his investment function. The period for payment of all the installments is rarely more than a year in common-law countries, and it is not uncommon for the whole subscription price to be payable when the shares are issued.
Under European legislation, directors are bound to offer new shares to existing shareholders in the first place unless they explicitly forgo their preemptive rights.
The term is directly associated with power and ruling, bureaucracy, politics, and the system to govern a certain society or people. Several centuries passed, however, before business ownership was subsumed under this arrangement.
Partnerships The distinguishing features of the partnership are the personal and unrestricted liability of each partner for the debts and obligations of the firm whether he assented to their being incurred or not and the right of each partner to participate in the management of the firm and to act as an agent of it in entering into legal transactions on its behalf.
History of the limited-liability company The limited-liability company, or corporation, is a relatively recent innovation. The essential point is that the directors and managers are accountable ultimately to the enterprise members, not to the outside owners of capital.
As a system, both business and government have their own set of laws.
Forming Trade Unions And Chamber Of Commerce Trade unions and chamber of commerce are associations of business organizations with a common interest. How Business Organizations Influences the Government Organizations try to force the government to act in ways that benefit the business activities.Relationship between Government and Business Organizations Government and business institutions in a country in many ways are interrelated and interdependent on each other.
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1.“Government” refers to the system and institution of governing and managing a certain society or country, while “business” is a systemic organization of. Nov 16, · Find new ideas and classic advice for global leaders from the world's best business and management experts.
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