Times Biz

The term ‘promoter’ means an individual, firm or institution which undertakes to form a company with reference to a given object and sets it going and takes the necessary steps to accomplish that purpose.  It is not a terms of law but of business.  Tata, Birla, Ambani are well-known promoters in India.
The role of promoters may be described as follows:

• Discovery of Business Opportunities: Promoters identify the opportunities which could be undertaken as business concerns.  They carry out a preliminary study of the market to judge whether a new product or service will sell.  They also consult experts in the field for this purpose.

• Detailed Investigation: Promoters conduct detailed examination to judge the prospects and profitability of business proposals.  They analyze the probable cost of production, nature of competition in the market, availability of required technology and raw materials,. Expected sales volume, amount of refit expected, etc.

• Assembling Resources: Promoters take steps to ensure the availability of necessary capital, materials, machinery, personnel, etc.  They enter into contracts with brokers, underwriters, bankers, etc.

• Canvassing: Promoters approach the appropriate persons and persuade them to join in the formation of the company.

• Launching the Enterprise: Promoters take steps to get the Oman incorporated.  They set the necessary documents prepared a filed so that the company is formed and can commence business operations

Promoters are of the following types:

Professional Promoter: He promotes a company and then transfers its management and contralto the shareholders.  Promotion is his profession.

Occasional Promoter: He promotes a company once in a while. Promotion is not his profession.  Once the task of promotion is over, he returns to his original occupation.

Entrepreneur Promoter: He promotes a company for himself.  He continues to manage and control the company after promotion.

Financial Promoter: He may be an investment banker or a financial institution who promotes a company due to his financial experience.

Technical promoter:  Sometimes an expert in a technical field such as engineering, architecture, etc. may promote a new enterprise and charge fee for his service.

Promotion means the discovery of business opportunities and subsequent organization of funds and managerial skills into a business enterprise for the purpose lovemaking refits there from.
A promoter is a person who identifies a business opportunity, analysis its prospects and takes steps to form a company with reference to the business opportunity.  The promoter conceives the idea of a business, analysis its prospects, brings together the required resource and gets a company incorporated.  The promoter may be an individual firm or even company.
The objects of promotion of a company are as under
to start a new business enterprise;
to expand an existing enterprise, and
to amalgamate or combine tow or more existing enterprise into one enterprise.

Business involves risk.  Unless there is the possibility of earning profit no one would like to enter business.  Therefore profit is the reward for a businessman.  Profit is the greatest motivating force for business activity.  According to Ducker “Unless we provide roar risk we are going to destroy capacity to produce.  Therefore a minimum profitability adequate to risks which we by necessity assume and create is an absolute condition of survival not only for the enterprises but for society”.  Profit is the test of business performance.  In other words the efficiency of a bus business cannot be sustained for long and its closure can cause harm to the society.

Business exists and functions in a society and it must serve the interest of society.  The pursuit of money at the cost of service is not business.  In the words of uric “earning profit

Business exists and functions in a society and it must serve the interest of society.  The pursuit of money at the cost of service is not business.  In he words of Uric “earning profit can be no more the objective of a business than betting is the objective of a race making a score the objective of cricket or eating the objective of living.” According to Ducker “the problem of any business is not the maximization of profit but the achievement of sufficient profits to cover the risks of economic activity and thus to avoid loss”.

Thus earning of profits is essential for the survival and growth of a business.  Profit is a source of income and provides the means of livelihood for businessmen and their families.  It is an incentive and a reward for bearing the risks of business.  But earning of profits cannot be the sole objective of business.  In order to earn profits business must pursue other economic and social objectives.  Other economic objectives include maximum utilization of scarce sources creating customers innovation etc.  Business also has social objectives such as production of good quality products at fair prices generation of employment employment employee welfare etc.

Earning of profits is very necessary in business

Business is full of risks. No one will take the risk without the incentive of profit. Profit is the motivating force because it serves as a reward for bearing the risks of business.

No business can survive for long without earning profits. profits are the lubricants that drive the wheels of business. A business can maintain its profit earning capacity by replacing its obsolete assets.

Profits are he internal source of finance or the expansion of business. A business can grow if it continues to develop new products services markets and processes. For this purpose continuous research and development is necessary .Profits provide the capital for research and development. Reinvestment of earnings is the best method of financing expansion and growth of business.

A profit –making business commands prestige and recognition in society. Goodwill helps business to obtain funds and attract talented employees.

Profit is the indicator of success in business. More efficient a business is greater are its profits. Profit is the index of performance of businesses.

Profits provide the means of livelihood to businessmen and their families.

Profit is an important objective of business and it plays a vital role in business in the f profit is the source of income and provides the mean soft livelihood for the businessmen and their families Profit provides funds for the growth of business  Profit serves as an index of the efficiency and performance of business  Profit is a reward for risk bearing Profit increases the reputation or goodwill of a business firm.

Welcome eveybody here you can find news and article on business christmas cards, business holiday cards, business credit card, business insurance, business credit cards, business report, business technology optimization, business credit, business intelligence, business checks, business cards, windows vista business, business continuity, business software, business card printing, business plan software, vista business, yahoo small business, business degree, small business accounting, small business server, business email, small business loans, business loans, free business cards, business quotes, yahoo business, small business loan, business loan, small business, starting a small business, business card, starting your own business, business schools, business solutions, online business, business colleges, business management, small business, business plans, microsoft small business, business broker, small business administration, verizon business, business marketing, business listings, and much more related to Business.