11th Assignment OCM and S.P.

Can a businessman, a professional and an employee complete their jobs independently.

No a businessman, a professional and an employee cannot complete their jobs independently. Because

“Though there may not be complete distinction as far as their boundaries are concerned, some sort of division is certainly plausible. ”

Profession, Business and Employment are the terms that are frequently used in our day-today lives. Though there may not be complete distinction as far as their boundaries are concerned, some sort of division is certainly plausible.

An entrepreneur starts a business and produces goods and services for the satisfaction of human needs. He undertakes this activity with the primary aim of earning profits. He has to complete various kinds of formalities for bringing the unit into existence.

A professional firm on the other hand, comes into existence when a professional who holds suitable qualification to undertake desired work joins that body. Employment can be called a contract that is required to take up a job for somebody else.

The agreement of employment may be written or oral. While business basically comes under the purview of self- employment, services involve employment under somebody else. A professional body provides a specialized service to the clients. An employee on the other hand, undertakes the activities assigned to him by his employer.

No educational or technical qualifications are prescribed for setting up a business unit. On the other hand, a professional is required to acquire a particular degree or qualification prescribed by a particular professional body.

It is the expert knowledge that a professional is expected to exercise. There is no highest qualification binding for taking up a service, however, a well-qualified person can get a better job.

A business requires an investment as per the nature and scale of operations. A professional has to spend money on setting up his office or place of work. Employment does not require any substantial investment at all.

There is a greater element of risk in business as compared to service and profession. The motive of setting up a business is to earn profit but there can be loss too. A professional is comparatively safe as he earns fees for his services and there cannot be negative fees.

An employee earns wages or salary regularly. As long as he is in service, he has no risk at all. A professional has to be member of a body. A lawyer has to take permission from Bar Council to start legal profession. Though there are many bodies for businessmen but the membership of these bodies is not compulsory at all.

In this way, each term has certain merits and demerits associated with it along with confusion, which is evident when the question of giving concrete definitions arises.

Conclusion: Now we know the main differences between a professional, employee and a businessman. So, they cannot exist alone. They are interrelated to each other to fulfill their work.
Transport plays an important role in the economic development of any country.

The transport sector is an important component of the economy and a common tool used for development. Economic development can be achieved quickly if there is a more  mobility of people, goods and information.

  • Direct impacts. The outcome of improved capacity and efficiency where transport provides employment, added value, larger markets as well as time and costs improvements. The overall demand of an economy is increasing.

  • Indirect impacts. The outcome of improved accessibility and economies of scale. Indirect value-added and jobs are the result of local purchases by companies directly dependent upon transport activity. Transport activities are responsible for a wide range of indirect value-added and employment effects, through the linkages of transport with other economic sectors (e.g. office supply firms, equipment and parts suppliers, maintenance and repair services, insurance companies, consulting and other business services).

  • Induced impacts. The outcome of the economic multiplier effects where the price of commodities, goods or services drops and/or their variety increases. For instance, the steel industry requires cost efficient import of iron ore and coal for the blast furnaces and export activities for finished products such as steel booms and coils. Manufacturers and retail outlets and distribution centers handling imported containerized cargo rely on efficient transport and seaport operations.

No single transport mode has been solely responsible for economic growth. Instead, modes have been linked with the economic functions they support and the geography in which growth was taking place.

Transport investments also tend to have declining marginal returns. While initial infrastructure investments tend to have a high return since they provide an entirely new range of mobility options, the more the system is developed the more likely additional investment would result in lower returns. At some point, the marginal returns can be close to zero or even negative,

Economic changes. As economies develop, their function tends to shift from the primary (resource extraction) and secondary (manufacturing) sectors towards advanced manufacturing, distribution and services. These sectors rely on different transport systems and capabilities. While an economy depending on manufacturing will rely on road, rail and port infrastructures, a service economy is more oriented towards the efficiency of logistics and urban transportation. In all cases transport infrastructure are important, but their relative importance in supporting the economy may shift.

Conclusion:   Transport also contributes to economic development through job creation and its derived economic activities. Accordingly, a large number of direct (freighters, managers, shippers) and indirect (insurance, finance, packaging, handling, travel agencies, transit operators) employment are associated with transport. Producers and consumers take economic decisions on products, markets, costs, location, prices which are themselves based on transport services, their availability, costs and capacity.

The major points that make joint stock company superior to other forms of organisation are

Meaning: -A Joint stock is an incorporated association, which is an artificial person, having independent legal status with a perpetual succession, a common seal, a common capital of transferable shares carrying limited capital. In other words, Joint Stock Company is a business organization organized and owned by shareholders but managed by directors. But the directors must have to purchase the Qualification shares with in two months from the date of his admission.

Definition: - PROF. (H.L.Haney) “A joint stock company is a voluntary association of individual for profit, having its capital divided into transferable shares, the ownership of which is the condition of membership.”

Following is the features of Joint Stock Company

1. Artificial person

2. Incorporated association

3. Perpetual succession

4. Common seal

5. Limited liability

6. Large membership

7. Voluntary Association

The above important features are explained briefly as under:

1. Artificial Person: - A company is an artificial person created by a law, it has non-physical existence, but it has legal existence. Like human being, it can acquire property, enter into a contract, and sign documents, take legal action, etc,

2. Incorporated Association: - Every company in India has to be registered under the Indian companies Act, 1956. Registration or incorporation gives birth to a company. On registration, it gets a separate identity.

3. Perpetual Succession: A company has a perpetual succession. It means that the company has a long and stable life. Its existence is not affected by death, insolvency or insanity of its members.

4. Common Seal: - A company is an artificial person, and as such, it has to sign documents and other papers. However, it cannot sign as a human being and, therefore, the common seal serves as its signature. The common seal remain in the custody of the Board of Directors

5. Limited Liability: -The liability of the members of the joint stock company is limited to the extent of the Shares Purchased by them. If the shares are fully paid, the member is not liable for any debts of the company.

6. Large Membership: - A joint stock company enjoys large membership. This is because, in a private company, the minimum members are two maximum members can be fifty. In a Public company, the minimum members are Seven and there is no Maximum limit.

7. Voluntary Association: - A company is a voluntary association of persons. Any person competent to enter into a contract can become its member. To be a member, a person should buy or own the shares of the company. A person can terminate is membership form the company by transferring his shares.

Discuss the role of Joint Stock Company  in the development  of trade and commerce with relevant example.

The following are the main points because of which the Joint Stock Company aids in development of trade and commerce.

1.       Large Capital: -It is possible for a joint stock company to raise huge financial resources. There is no maximum limit on membership in a public limited company. Shares issued are available in small denominations. Therefore people can invest any small amount as per their needs and capacity due to the features of limited liability. Free transferability of shares etc. many investors are attracted to become shareholders of the company. Loans can be taken from banks and other financial institutions by the company.

2.       Democratic Management: - Though shareholders elect the Board of Directors, who manage the business efficiently, the directors are accountable to shareholders, their activities are supervised and controlled by shareholders indirectly.

3.       Transferability of Shares: -There is free transferability of shares in a public limited company. No permission is required to be sought from the directors or members of the company for buying or selling shares. However, a private limited company, does not permit free transferability of shares.

4.       Limited Liability: - The liability of a member in a public limited company is limited to the extent of the unpaid amount of the shares held by him. Since the company has an independent legal status, its liabilities are its own.

5.       Expert Services: - Due to large financial resources available with joint stock company, it can appoint experts for managing each area or functions of the company business, by paying attractive salaries to them, these brings in a great degree of professionalism and thereby, efficiency in management of business.

6.       Relief Taxation: - The companies are required to pay taxes at flat rate. The amount of tax on a high taxable income therefore may be less for a joint stock company than individuals in a same tax bracket.

7.       Public Confidence: - Joint stock company enjoys public confidence. The working of joint stock companies in India is governed by the provisions of Indian Companies Act, 1956.

8.       Scope for Growth and Expansion: - There is possibility of growth and expansion in the company business. The company can raise large financial resources. Attractive salaries can be paid to engage the services of experts for business expansion and for managing the business professionally.

Because of the above important points there is a steady and wider growth in trade and commerce.

Prepare a list of duties which you have to perform as a personal secretary.

A personal secretary (PS) is a civil servant in a governmental department or ministry, responsible to a secretary of state or minister.

A personal secretary is normally of middle management level; however, as the key official responsible for disseminating the decision of ministers.

The following are the duties of Personal secretary of Minister.

Link between Minister and Officials in the department : The private secretary is the principal link between a government minister and officials in the Department or Ministry. He or she has overall responsibility for coordinating the development of the minister's policy remit, ensuring that the aims of ministers are clearly and fully implemented by the department. In that respect a PS and APS will often be in a position of debate with colleagues of much higher seniority.

Present at every task: A personal secretary is always in attendance with the minister at every meeting or event to provide support and to ensure that a member of the civil service, who are non-political appointees, takes a factual note of discussions and commitments.

Ownership of the Ministerial diary: They also have ownership of the ministerial diary, managing the ministerial diary secretary whose task is to sift and prioritise invitation, commitments, policy briefings and parliamentary business. A Personal Secretary is always the initial source of advice to Ministers on parliamentary protocol, the process of cabinet business and departmental policy.

Difficult when compared to equivalent grade: Working in ministerial office  as a personal secretary is often seen as essential for advancement to the Senior Civil Service. Although considered to be a highly rewarding and sought-after post, it is one of the most difficult when compared to others at the equivalent grade.

Seniority importance: Depending upon the seniority of their political principal, private secretaries may be regarded an important officials in their own right; the Queen's private secretary and the prime minister's private secretary being the most important.

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