GHANA COMMUNICTION TECHNOLOGY UNIVERSITY

TAKORADI CAMPUS
PROGRAM: DIPLOMA IN BUSSINESS ADMINISTRATION
NAME: URSULA CLELAND
INDEX NUMBER: 3011211002
COURSE TITLE: INTRODUCTION TO BUSSINESS
COURSE CODE: DIMG 105
LEVEL: 100
Q1.
Legal is a law that is recognized and enforced principle or causal link that, if violated, results in a penalty,
such as injury, pain, failure, or loss. Legal are binding rules that relate to the conduct of individuals and
businesses and are designed to prescribe obligation or duty and enforce justice. A law is largely derived from
formal or custom enactment by someone in power within the area, such as a legislature or a ruler. Laws carry
authority and power of the enactor, and anyone who violates them is subject to penalties.
Legal business entities come in all shapes and forms. A sole proprietor singlehandedly bears the responsibilities
and risks of operating a business, but they can also take all of the business profits. This type of business owner
wouldn't be held to the same laws that apply to a multi-national corporation.
When a business is formed as a partnership, the members form an association, allowing them to participate
equally in profit-sharing and management. Partners in this type of business formation are also liable for all
business debts and legal action in relation to any contracts or other agreements. The owners of a business might
choose to appoint an agent, who is an individual who brings their expertise to contractual relationships between
businesses and any third parties with which the company interacts.

A business practice is a series of repeatable steps taken by a team or company to achieve some sort of
business goal: managing deliveries, assembling products, onboarding employees, etc. The key aspect of a
business process is repeatability – a process is not a one-time thing. You're probably wondering who we are.
Tallyfy is a product that simplifies and automates your business processes. It's the secret to running smooth
operations. Instead of creating process diagrams (which nobody looks at), documentation which you can only
read and never act, you can create and run any process in your company within seconds.
Settling for basic and cheap project or task management tools is the biggest mistake you can ever make. You
get what you pay for. If you try to save a cent - you will lose a dollar. Wasted time (at $40/hour) is far more
expensive than the cost of software. There's a huge difference between process management and project or task
management. Processes relieve stress, make things predictable - and help you grow and become efficient.
It's important to understand that context before you carry on reading.
Successful people are smart enough to fundamentally change the way they work and amaze themselves and
everyone else with new ideas. The main benefit of business processes is that they streamline your business.
ideas.
 Q2. i
Incorporating a business involves legally operating if from you as its owner as well as giving the business a
separate legal entity is officially recognized typically, when a business is established by and individual as a sole
proprietor, its owns all of its assets, but in turn the owner will also be responsible for liabilities and debts that
could be incurred while the business is operating with a corporation, that ownership is separate. There are
several disadvantages of incorporating a business that owners should be aware of before making the choice to
incorporate.

ii. Expensive incorporating a business will take of business structures. Incorporating also includes
higher start-up expenses compared to a partnership or sole proprietorship a corporation is a far more
complex legal structure therefore it is more costly and complicated to setup. The fees charged for
incorporating a business other federally or locally can be as high seven hundred dollars. When setting up
your state’s office that charters corporations, which is time consuming as well. You must also pay annual
fees

iii. Double taxation, incorporating a business will also mean annually having two tax returns. This is
commonly referred to as double taxation.
Double taxing involves corporation tax and income tax. This means not only extra legal formalities and
paperwork on your part but also, as opposed to a sole proprietorship business structure, an incorporated business
will not have the capacity to deduct its losses from the personal profit of its owner. In addition, there are extra
costs in the form of account fees, legal fees and other charges. The income of non-incorporated business on the
hand is only taxed once.

iv. Extra paperwork, the extra paper work does not stop with the filling of two tax returns as incorporated
business will also need to take care of detailed books, take notes at meetings, as well as create reports a share
register, tax return files, a transfer register, bank accounts records, and audit books.

v. Lack of ownership, when you establish a separate credit and bank accounts for your business, which
means you must have the appropriate business identification. Your personal funds under law once you have
incorporated additionally, since establishing a corporation may involve selling stocks, stakeholders can become
the owners of your business. This means that you will not have full say when comes to running the corporation.
All shareholders will have a vote when electing the board of directors who will run the corporation.
 Q3. i. Preference shares, in addition to ordinary shares, many companies issue preference shares whose
owners, receive preference in the payment of dividend. Also if the company is dissolved, holders of preference
share have a claim in the firms assets prior to any claim by ordinary shareholders.

ii. Ordinary shares, the basic form of corporate ownership is ordinary shares owners of a company, in
return for their investment they expect to receive payment into form dividends.

iii. Shares, shares are units of ownership in a company, although many organizations issues only one
type of shares (ordinary share) have types exist ordinary and preference.
Q4a. Advantage
i. Management training and assistance, many franchisers operate training schools for franchises. This
is perhaps the grateful advantage of buying a franchise as compared to sharing a new business or buying an
existing one.

ii. Brand-name Appeal, an individual who buys a well-known national franchise especially a
big-name has a good chance of succeeding. The franchiser's name according to kuratko and Hodges (1993)
is a drawing more aware of the establishment of people are often more aware of the product or service
offered by a national franchise and prefer it to those offered by lesser-known outlets.

ii. Financial Assistance is another reason a franchise can be good investment is that the franchiser
may be able to help then new owner secure the financial assistance needed to have suppliers to franchises
on credit.

b. Disadvantages
i. The franchiser might be unable live up to promises in the franchising agreement if franchises
complain, they risk having their agreement with the franchiser terminated or not answered.

ii. The franchiser generally exercises a fair amount of central over the operation in order to achieve a
degree of uniformity if entrepreneurs do not follow franchiser direction they may not have their franchise
license renewed when the contract expires.

iii. Some of the most important drawbacks to franchising include monthly payment must be made to
the franchiser even if profits are low.