Corporate Finance Case Study no.

Suggested by- Prof. Mr. Niranjan Shastri

Submitted by- Ghanshyam Sharma

PGPSM 3rd Term

CHIMS

Ghanshyam Sharma
PGPSM 3rd Term
CHIMS
Corporate Finance Case Study no. 1

A business is a legally recognized organization designed to provide goods and/or

services to consumers, governments or other businesses. A business needs a
market. A consumer is an essential part of a business. Businesses are predominant
in capitalist economies, most being privately owned and formed to earn profit to
increase the wealth of owners. The owners and operators of a business have as
one of their main objectives the receipt or generation of a financial returns in
exchange for work and acceptance of risk. Notable exceptions include
cooperative businesses and state-owned enterprises. Socialistic systems involve
government, public, or worker ownership of most sizable businesses.

The etymology of "business" relates to the state of being busy either as an

individual or society as a whole, doing commercially viable and profitable work.
The term "business" has at least three usages, depending on the scope — the
singular usage (above) to mean a particular company or corporation, the
generalized usage to refer to a particular market sector, such as "the music
business" and compound forms such as agribusiness, or the broadest meaning to
include all activity by the community of suppliers of goods and services.
However, the exact definition of business, like much else in the philosophy of
business, is a matter of debate.

Business Studies, the study of the management of individuals to maintain

collective productivity in order to accomplish particular creative and productive
goals (usually to generate profit), is taught as an academic subject in many
schools

Ghanshyam Sharma
PGPSM 3rd Term
CHIMS
Corporate Finance Case Study no. 1

Ownership is the state or fact of exclusive rights and control over property,
which may be an object, land/real estate, intellectual property (arguably) or some
other kind of property. It is embodied in an ownership right also referred to as
title.

Ownership is the key building block in the development of the capitalist socio-
economic system. The concept of ownership has existed for thousands of years
and in all cultures. Over the millennia, however, and across cultures what is
considered eligible to be property and how that property is regarded culturally is
very different. Ownership is the basis for many other concepts that form the
foundations of ancient and modern societies such as money, trade, debt,
bankruptcy, the criminality of theft and private vs. public property.

The process and mechanics of ownership are fairly complex since one can gain,
transfer and lose ownership of property in a number of ways. To acquire property
one can purchase it with money, trade it for other property, receive it as a gift,
steal it, find it, make it or homestead it. One can transfer or lose ownership of
property by selling it for money, exchanging it for other property, giving it as a
gift, being robbed of it, misplacing it, or having it stripped from one's ownership
through legal means such as eviction, foreclosure and seizure. Ownership is self-
propagating in that if an object is owned by someone, any additional goods
produced by using that object will also be owned by the same person.

Ghanshyam Sharma
PGPSM 3rd Term
CHIMS
Corporate Finance Case Study no. 1

Basic forms of ownership

Although forms of business ownership vary by jurisdiction, there are several

common forms:

• Sole proprietorship: A sole proprietorship is a business owned by one

person. The owner may operate on his or her own or may employ others.
The owner of the business has total and unlimited personal liability of the
debts incurred by the business.

• Partnership: A partnership is a form of business in which two or more

people operate for the common goal of making profit. Each partner has
total and unlimited personal liability of the debts incurred by the
partnership. There are three typical classifications of partnerships: general
partnerships, limited partnerships, and limited liability partnerships.

• Corporation: A business corporation is a for-profit, limited liability entity

that has a separate legal personality from its members. A corporation is
owned by multiple shareholders and is overseen by a board of directors,
which hires the business's managerial staff.

• Cooperative: Often referred to as a "co-op business" or "co-op", a

cooperative is a for-profit, limited liability entity that differs from a
corporation in that it has members, as opposed to shareholders, who share
decision-making authority. Cooperatives are typically classified as either
consumer cooperatives or worker cooperatives. Cooperatives are
fundamental to the ideology of economic democracy

Ghanshyam Sharma
PGPSM 3rd Term
CHIMS
Corporate Finance Case Study no. 1

Thanks

Ghanshyam Sharma
PGPSM 3rd Term
CHIMS