Understanding the Nature and Purpose of Business Enterprises
This session delves into the nature and purpose of business enterprises, focusing on key aspects such as identity, meeting needs, resource mobilization, contracting, defense, market creation, and strategic planning. It emphasizes the core purpose of businesses as increasing owners' wealth. Additionally, it explores different types of business enterprises, including sole proprietorships, partnerships, and various types of private and public companies. The importance and features of a limited liability company as a preferred business vehicle are also highlighted.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
E N D
Presentation Transcript
Module 1: Session 3 The Nature and Purpose of Business Enterprises
Purpose of the Session By the end of the session participants should be able; 1) To recall the nature, type and purpose of business enterprises 2) Explain the limited liability company as a preferred vehicle in commercial business such as road construction 3) Outline statutory and citizenship roles of business enterprises 4) Discuss the competence and staffing challenge in road construction 5) Appreciate the need for networking amongst road contractors Module 1: Session 3 2 10/6/2024
Nature of a Business Enterprise Businesses should; 1) Have identity 2) Meet a need at a fee 3) Mobilize resources 4) Contract with others e.g. employ 5) Defend itself 6) Create a market and a reputation (brand) 7) Have a strategy for survival and growth Module 1: Session 3 3 10/6/2024
Purpose of a business enterprise 1) Create a customer? 2) Develop goodwill and brand image (prestige)? 3) Make profit? 4) Create employment? 5) Create a legacy? The core and rational purpose of being in business is to increase the owners wealth. All other objectives are subsidiary and only a means to attain this purpose. Module 1: Session 3 4 10/6/2024
Types of business enterprises Sole proprietor (Munakukaama and sons) Partnerships (Munaku,Tezifa and partners) Private Company limited by guarantee (no share capital). Private Company limited by shares (members less than 50) Public Company limited by shares (quoted on the stock exchange) Joint ventures for short term, specific assignments. Module 1: Session 3 5 10/6/2024
Why a limited liability company is preferred Legal person distinct from the owners (the veil) Legal entity with perpetual succession 1) Can sue and be sued 2) Own property and owe 3) Freely contract per articles and memorandum Liability of owners limited to unpaid balance on shares Interest of parties proportionate to shares held Capital cannot be reduced (unless by Court permission) but may be infinitely expanded Operations regulated by the company s act. Module 1: Session 3 6 10/6/2024
Statutory roles of a business 1) Operate legally as a citizen 2) For a company, hold annual general meetings and file annual returns to registrar of companies 3) Pay trade and other licenses 4) Maintain proper accounting records and prepare audited financial statements 5) Make tax returns and pay taxes 6) Register for social security and make contributions 7) Observe provisions of the employment act, Trade unions act, and occupational health and safety laws Module 1: Session 3 7 10/6/2024
Citizenship roles of a business Make economic use of resources Contribute to national development Create employment Safeguard national resources and the environment Maintain ethical behavior and practices Contribute to welfare of society Module 1: Session 3 8 10/6/2024
Competence and staffing A business employs others to perform on its behalf Must build up/retain core competences Through staffing, must improve performance and continue to learn new skills Have in house core competences in road construction Technical e.g. civil engineering, surveying, project management, equipment operation and maintenance etc. Managerial e.g. corporate and strategic management, finance and accounting, human resource supervision etc. Module 1: Session 3 9 10/6/2024
The role of UNABCEC Lobbying and advocacy to improve the policy and regulatory environment, Building capacity for improved competitiveness of NCI, Catering for professional development of members, Networking and partnership development, Fostering regional and international exposure and cooperation, Affordable access to technical and market information, Module 1: Session 3 10 10/6/2024
Role of UNABCEC Providing access to UNABCEC web based library services. Current strategic objectives of the Association include: 1) Ensuring a supportive NC policy and regulatory framework 2) Reinvigorating effective membership participation 3) Growing membership and promoting the Associations sustainability and social responsibility. Module 1: Session 3 11 10/6/2024
The role of UACE Uganda Association of Consulting Engineers (UACE) is the leading advocacy body for consulting engineers. Its mission is to develop and promote the consulting engineering industry in Uganda to internationally accepted standards. Represents professional concerns and general business interests for its members, Participates in process of influencing policy in the construction industry, Module 1: Session 3 12 10/6/2024
The role of UACE Keeps in touch with evolving issues in the industry, Keeps in touch with other players, Caters for members professional ethics, standards and client-consultation-contractor relationships. Module 1: Session 3 13 10/6/2024
Discussion by groups 1) State advantages and disadvantages of a limited liability company and why it should be the preferred vehicle. 2) Identify and discuss the purpose and statutory responsibilities of a business enterprise 3) Discuss the citizenship responsibilities of any business 4) Identify the core competences of a road construction business and discuss the barriers to possess them 5) Explain and Justify the role of UNABCEC and other road contractors associations you are aware of. Module 1: Session 3 14 10/6/2024
END Q&A Module 1: Session 3 15 10/6/2024
