In My Business And Management Course We Have Learned About

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In my business and management course we have learned about how to start business and manage a business in its very basic. One of the main themes that I found interest in this course was the keyword shareholder. The first thing that is important to know when starting a business it its role, the main functions and in what sector your business is going to be in. Also the main reason why businesses are started is the mnemonic GET CASH principle. There are several steps one has to go through when starting a business and the first step us to write a business plan. This means that once someone has feasible a business idea, you must officially formulate your idea into a business plan. The second step is to obtain start-up capital and the third…show more content…
After the company has been approved the new shareholders have to elect a board of directors whom are going to run the company on their behalf. The directors are been elected to do the day to day running of a company, and because of their expertise and skills. After the broad of directors are elected of the shareholders they take over they responsible of the running of the company. Each share equals one vote, but in most cases small numbers of shares have little to say as in most cases large investors who hold the majority of shares have the power and saying in the company. The number of shares in one company, which equals 100% differ from company to company, and the price per share differ as well. There are two different types of companies: private limited companies and public limited companies. Shares cannot be traded without the approval of the board of directors in a private limited company. The shares are also only sold to friends or family member with a prior agreement and not to the general public. Normally a private limited company has the letters “Ltd” after its name, On the other hand a public limited company is selling their stocks on the Stock Market to the general public. Public limited companies sometimes carry the letters “PLC” after its name. The value of a company is all shares added together and have to equal 100% of the shares. This is how the value of a company constantly is change, as a result
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