CS625 Assignment No 02 Fall 2020 Solution / Discussion Due Date: 13-12-2020
Question No 1: Marks: 5
M.S Enterprises (Private) Limited has its shares distributed all around the world. The Company has a Central head office for all the operational tasks. Considering the above scenario, answer the following questions:
Which type of operational decisions does the Company has?
Can this company sell its shares through stock exchange?
Question No 2: Marks: 5
Woody Wood (Private) Limited is a newly established company and intends to start a new business project of Furniture manufacturing. Equipment and other manufacturing units are imported by the company. However, in order to start the manufacturing, the company has to manage the required funds. Keeping in view the size and nature of this business startup, answer the following:
What are the three sources of funding for a Company?
In order to meet the shortage of funds, which funding source shall be suitable for company to start this business project?
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CS625 Assignment 2 Solution Fall 2020
Question No. 1:
The M.S Enterprises (private) limited company has centralized operational decisions because all the operational tasks are taken at the central head office instead of its shares distributed all around the world.
M.S Enterprises (private) limited company cannot sell its shares through Stock exchange because A private limited company’s disclosure requirements are lighter, but its shares may not be offered to the general public and therefore cannot be sell on a public stock exchange.
Question No. 2:
In order to meet the shortage of funds for woody wood (private) limited, Grants funding source shall be suitable for woody wood (private) limited company to start this business project because a grant is a sum of money given to the company; while the company is obliged to demonstrate that it has been used for the purposes for which it was intended, it is not intended that the grant should ever be paid back to the organization which gave it. The availability of grants and other help for new companies depends very much on where the company is located, how many people it expects to employ, and on government policy at the time.