Feedough Community Latest Questions

Amruta

  1. Companies can be classified on the basis of the following: 1. Based on the Mode of Incorporation Companies can further be of three types on the basis of modes of incorporation: i) Royal Chartered Companies: These companies don't exist any more. These are the companies created by a Royal Charter (monRead more

    Companies can be classified on the basis of the following:
    1. Based on the Mode of Incorporation
    Companies can further be of three types on the basis of modes of incorporation:
    i) Royal Chartered Companies: These companies don’t exist any more. These are the companies created by a Royal Charter (monarchs and kings).
    ii) Statutory Companies: Incorporated by means of special act by centre or state legislature.
    iii) Incorporated Companies: These are companies registered under the companies act.
    2. Based on the Number of Members
    Companies can further be of three types on the basis of number of members:
    i) Public Limited Company: Existence of a Public Limited Company is seperate from that of its shareholders. There need to be a minimum of 7 members to form a public limited company.
    ii) Private Limited Company: More than 2 and less than 50 members are required for a private limited company. Here shares are subscribed by its members only and subscription is not open to general public.
    iii) One Person Company: Only a single person is allowed to register a company under the one person company category.
    3. Based on Liability of the Members
    Companies can further be of three types on the basis of member liability:
    i) Limited by shares: Liability of shareholders is limited to the amount they have invested.
    ii) Limited by guarantee: On liquidation, shareholders have to pay the amount guaranteed by them.
    iii) Unlimited companies: No limit on the liability of the shareholders.
    Here is a link to an article for better understanding: https://www.feedough.com/types-of-companies/

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rayon

  1. If you are anticipating a high amount of tax on your windfall gain, then there are ways to avoid it, but before you get started with it research the taxes you might owe to the IRS on that sum. Note that if it's a big amount, there are ways to help lower it. They are few things you can try to do withRead more

    If you are anticipating a high amount of tax on your windfall gain, then there are ways to avoid it, but before you get started with it research the taxes you might owe to the IRS on that sum. Note that if it’s a big amount, there are ways to help lower it. They are few things you can try to do with that extra cash to reduce the tax amount. Pension is considered as one of the best ways to cut taxes, although using a pension to minimize taxes works only if the windfall is earned income not through other sources like a lottery. Next, creating a captive insurance company is an advanced strategy that requires having the right tax and legal team, but the rewards can be worth the cost. Other ways are to fund an IRA, health spending account, or another qualified retirement plan.

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Amruta

  1. "Having a co-founder for your startup will help you in following ways: 1. Better decision making: The co-founder will help you in better decision making by providing you a different perspective on a particular idea. When faced with a dilemma they can also guide you. 2. Moral and Emotional Support: TRead more

    “Having a co-founder for your startup will help you in following ways:
    1. Better decision making: The co-founder will help you in better decision making by providing you a different perspective on a particular idea. When faced with a dilemma they can also guide you.
    2. Moral and Emotional Support: The co-founder can be your support system in times of stressful situation.
    3. Support of Investors: It is said that investors prefer businesses that are run as a team and not by individuals. Having a co-founder can be great here.
    4. Division of responsibility: You would not have to take up everything upon you. Responsibilities can be shared between the both of you.
    Here is an article to help you further with this question: https://www.feedough.com/why-do-you-need-co-founder-for-your-startup/

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Maitya

  1. The role of Board of Directors is significant and poignant for a company. The board determine the company's vision and mission to guide and set the pace for its current operations and future development it also determine the values to be promoted throughout the company and review company goals and pRead more

    The role of Board of Directors is significant and poignant for a company. The board determine the company’s vision and mission to guide and set the pace for its current operations and future development it also determine the values to be promoted throughout the company and review company goals and policies.
    The Directors review and evaluate present and future opportunities, threats and risks in the external environment and further determine strategic options, select those to be pursued, and decide the means to implement and support them.Their role is to create business strategies and ensure that the company’s organisational structure and capability are appropriate for implementing the chosen strategies.
    As they are on the top level of hierarchy, so they need to delegate authority to management, and monitor and evaluate the implementation of policies, strategies and business plans.They also need to determine monitoring criteria to be used by the board and ensure that internal controls are effective.
    They also need to understand and take into account the interests of shareholders and relevant stakeholders. While they should also monitor relations with shareholders and relevant stakeholders by the gathering and evaluation of appropriate information.

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Manushree Mishra

  1. Insider trading is illegal use of information of a company for one's personal profit. This term is commonly used to refer to buying or selling of stocks on the basis of information that is not available to the public. Let's consider an example of a manager who has exact information about the stocksRead more

    Insider trading is illegal use of information of a company for one’s personal profit. This term is commonly used to refer to buying or selling of stocks on the basis of information that is not available to the public. Let’s consider an example of a manager who has exact information about the stocks which is not disclosed and he uses that information to buy stocks of his own company knowing the profit he will manifest out of this action, then it is called insider trading.
    Other example of it could be an employee trading the information about his company’s future planning regarding a product with some other competitor company in the market.

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rayon

  1. According to a definition:"The conversion rate is the number of conversions divided by the total number of visitors." Broadly speaking, An eCommerce conversion rate is the percentage of website visitors who purchased something from your online store in set period of time. A high conversion rate is iRead more

    According to a definition:”The conversion rate is the number of conversions divided by the total number of visitors.” Broadly speaking, An eCommerce conversion rate is the percentage of website visitors who purchased something from your online store in set period of time. A high conversion rate is indicative of successful marketing and web design: It means people want what you’re offering, and they’re easily able to get it. This act is called a conversion, and it’s just about the most important metric you’ll need to watch as you plan on building your business and increasing revenue.
    To get a better understanding you may watch the video:

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rayon

  1. According to a definition on Wikipedia, "The effective interest rate, effective annual interest rate, annual equivalent rate or simply effective rate is the interest rate on a loan or financial product restated from the nominal interest rate and expressed as the equivalent interest rate if compoundRead more

    According to a definition on Wikipedia, “The effective interest rate, effective annual interest rate, annual equivalent rate or simply effective rate is the interest rate on a loan or financial product restated from the nominal interest rate and expressed as the equivalent interest rate if compound interest was payable annually in arrears.”
    Simply speaking we can say that, Annual Equivalent Rate or AER is the real or actual interest rate that an investor would manifest at the end of the year for his shares and bonds or loans. It could also be noted that the AER will be higher than the stated interest rate.

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Manushree Mishra

  1. New found freedom, that's what I'll term remote work as. Remote work is nothing but working outside the traditional atmosphere of working, which could imply that an employee working at home or a café or anywhere but at an office, a place where he's supposed to be working. It breaks the stereotypicalRead more

    New found freedom, that’s what I’ll term remote work as. Remote work is nothing but working outside the traditional atmosphere of working, which could imply that an employee working at home or a café or anywhere but at an office, a place where he’s supposed to be working. It breaks the stereotypical belief of setting up a particular setting to do the work successfully.

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Janny

  1. Basically, in a carry trade you borrow a currency that has a low interest rate, then use that money to buy another currency that pays a higher interest rate. You make profit on the difference between the interest rates. So the steps to calculate this amount is firstly assume that a trader notices thRead more

    Basically, in a carry trade you borrow a currency that has a low interest rate, then use that money to buy another currency that pays a higher interest rate. You make profit on the difference between the interest rates. So the steps to calculate this amount is firstly assume that a trader notices that rates in Japan are 0.25 percent, while they are 2 percent in the United States. This means the trader expects to profit 1.75 percent; the difference between the two rates. The first step is to borrow yen and convert them into dollars. The second step is to invest those dollars into a security paying the U.S. rate. Assume the current exchange rate is 230 yen per dollar and the trader borrows 100 million yen. Once converted, the amount that he would have is:
    U.S. dollars = 100 million yen ÷ 230 = $434,782.61
    After a year invested at the 2 percent U.S. rate, the trader has:
    Ending balance = $434,782.61 x 1.02 = $443,478.2622
    Now, the trader owes the 100 million yen principal plus 0.25 percent interest for a total of:
    Amount owed = 100 million yen x 1.0025 =100.25 million yen
    If the exchange rate stays the same over the course of the year and ends at 230, the amount owed in U.S. dollars is:
    Amount owed = 100.25 million yen ÷ 230 = $435, 869.5652
    The trader profits on the difference between the ending U.S. dollar balance and the amount owed, which is:
    Profit = $443,478.2622- $435, 869.5652 = $7,608.697
    Notice that this profit is exactly the expected amount: $7,608.697 ÷ $434,782.62 = 1.75%

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rayon

  1. According to the Company laws, in a public company or a private company, two-thirds of the total numbers of Directors are appointed by the shareholders and the remaining one-third is appointed in accordance with the manner prescribed in Articles. If that does not happen or it fails, then the remainiRead more

    According to the Company laws, in a public company or a private company, two-thirds of the total numbers of Directors are appointed by the shareholders and the remaining one-third is appointed in accordance with the manner prescribed in Articles. If that does not happen or it fails, then the remaining one third shall also be appointed by the shareholders of a company. The Articles of a public company or a private company subsidiary of a public company may provide for the retirement of all the Directors also.
    In a private company, which is not a subsidiary of a public company, the Articles can prescribe the manner of appointment of any or all the Directors. In case there are no articles regarding it then again they are appointed by the shareholders.
    The Companies Act also permits the Articles to provide for the appointment of two-thirds of the Directors according to the principle of proportional representation, if so adopted by the company in question while Nominee directors can be appointed either by the Articles or the Government.

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