1. Please explain the three forms of business ownership!

Answer :

It is important that the business owner seriously considers the

different forms of business organizationtypes such as sole
proprietorship, partnership, and corporation. Which organizational form is
most appropriate can be influenced by tax issues, legal issues, financial
concerns, and personal concerns. For the purpose of this overview, basic
information is presented to establish a general impression of business
organization.

I. Sole Proprietorship

A sole proprietorship, also known as the sole trader or simply

a proprietorship, is a type of business entity that is owned and run
by one individual and in which there is no legal distinction between
the owner and the business. Some formal definitions of a sole
proprietorship are "a business owned by one person who is entitled
to all of its profits" (Glos & Baker) and "a business owned and
controlled by one man even though he may have many other
persons working for him" (Reed & Conover).

The individual entrepreneur owns the business and is fully

responsible for all its debts and legal liabilities. The owner receives
all profits (subject to taxation specific to the business) and has
unlimited responsibility for all losses and debts. Every asset of the
business is owned by the proprietor, and all debts of the business
are the proprietor's. This means that the owner has no less liability
than if they were acting as an individual instead of as a business. It
is a "sole" proprietorship in contrast with partnerships. More than
75% of all United States businesses are sole proprietorships.
Examples include writers and consultants, local restaurants and
shops, and home-based businesses.

A sole proprietor may use a trade name or business name

other than his or her legal name. In many jurisdictions, there are
rules to enable the true owner of a business name to be
ascertained. In the United States, there is generally a requirement
to file a doing business as statement with the local authorities. In
the United Kingdom, the proprietor's name must be displayed on
business stationery, in business emails, and at business premises,
and there are other requirements.
 Characteristics of sole proprietorship
1. Held individual (individual or family company)
2. The management simple
3. The capital is relatively not too large
4. Continuity of business depends on the owner
5. The value of sales and value added created relatively small.

The advantages with a sole proprietorship

The sole proprietor form of business ownership is the most

common form in the United States and also the simplest. In this form of
business ownership, an individual proprietor owns the business, manages
the business, and is responsible for all of the business' transactions and
financial liabilities. This means that any debts incurred must be paid by the
owner. This form of business has several advantages .
a) Quicker Tax Preparation
As a sole proprietor, filing your taxes is generally easier than a
corporation. Simply file an individual income tax return (IRS Form 1040),
including your business losses and profits. Your individual and business
income are considered the same and self-employed tax implications will
apply.

b) Lower Start-up Costs

Limited capital is a reality for many start-ups and small businesses.
The costs of setting up and operating a corporation involves higher set-up
fees and special forms. It's also not uncommon for a lawyer to be involved
in forming a corporation.

c) Ease of Money Handling

Handling money for the business is easier than other legal business
structures. No payroll set-up is required to pay yourself. To make it even
easier, set up a separate bank account to keep your business funds
separate and avoid co-mingling personal and business activities.

d) Government Regulation
Sole proprietorships also have the least government rules and
regulations affecting it. They do need to comply with licensing
requirements within the states in which they do business and they do need
to pay attention to local regulations. However, the paperwork required is
much less than large corporations. Thus, they can operate quite easily.
Sole proprietorships also do not pay corporate taxes.
 e) Sale and Inheritance
The sole proprietor can own the business for as long as he or she
decides, and can cash in and sell the business when they decide to get
out. The sole proprietor can even pass the business down to their heir, a
common practice.

There are disadvantages with a sole proprietorship

Sole proprietorships are the smallest form of business organization,

and also the most common in the United States. However, while there are
certain advantages (it is easier to set up a sole proprietorship than a
limited liability company, for instance), there are a number of big
disadvantages, particularly in the long term, that make the sole
proprietorship model quite unattractive to business owners.

The main disadvantages to being a sole proprietorship are:

Unlimited liability: Your small business, in the form of a sole

proprietorship, is personally liable for all debts and actions of the company.
Unlike a corporation or an LLC, your business doesn't exist as a separate
legal entity. Therefore, all of your personal wealth and assets are linked to
the business. For instance, if you go bankrupt and owe your debtors
$100,000, then that money will have to come out of your own wallet even if
there is no money left in the business. If you operate in a higher risk
business, such as manufacturing or consumables, the cost to benefit ratio
is favorable toward a corporate structure.

Lack of financial controls: The looser structure of a proprietorship won't

require financial statements and maintaining company minutes as a
corporation. The lack of accounting controls can result in the owner being
lax about financial matters, perhaps falling behind in payments or not
getting paid on time. It can be a serious issue if financial controls are not
strictly managed.

Difficulty in raising capital: Imagine your business in five years. Will it

still be a business of one? Growing your small business will require cash
to take advantage of new markets and more opportunities. An unrelated
investor has less peace of mind concerning the use and security of his or
her investment, and the investment is more difficult to formalize; other
types of business entities have more documentation. Outside investors will
take your company more serious if you are a corporation.
 II. Partnership : is a merger between two people (bodies) or more to
own or together and run a company in order to benefit or profit.
Starting an unincorporated company with one or more
partners via an agreement is generally referred to as a partnership,
in which each of the owners assume personal liability for the legal
actions and debts of the entity (unless otherwise stated by law or
within the agreement). Under this model, there are a few different
formats that new business owners should consider before finalizing
the agreement. Each format has implications, primarily revolving
around the concept of liability, and choosing the right format for the
needs of the partners is a critical starting point.

Types of Partnerships
For the purpose of this discussion, the most important types
of partnerships to consider are general partnerships, limited
partnerships, joint liability partnerships, several liability
partnerships, and limited liability partnerships.

a. General Partnerships (GP)

This represents a default version of a partnership, which governs
the relationships between the individual partners as well as between the
partnership and the outside world. Each partner in the organization is
considered an agent of the partnership, which means each partner
represents the organization when dealing with external parties. Similarly,
each partner has equal right to participate in the management, decision-
making, and control (unless otherwise stated). Under most formats, adding
a new partner requires the complete support and consent of all existing
partners.

In terms of risks and returns (or liabilities and profits), the default
assumption is that profits are distributed equally, and that liability is shared
jointly and severally. Any debt or liability impacting the organization can be
distributed equally (or via allocated responsibility) across the partners'
personal assets.

b. Limited Partnerships (LP)

In a limited partnership, a general partner may collaborate with a
limited partner. A limited partner has no managerial authority, nor in most
situations would they earn equal returns. However, the limited partner is
protected by limited liability in legal situations regarding debt or other costs
that may impact the general partner's personal assets. Along similar lines,
limited partners are not considered agents of the organization from a legal
perspective. It is also important to understand that this is not the same as
a limited liability partnership (LLP), in which all partners have limited
liability.

c. Joint Liability Partnerships

Exactly as it sounds, a joint liability partnerships holds all partners
equally liable for any financial and legal issues. As opposed to a several
liability concept, in which liability may be distributed based on certain
proportionate responsibility, joint liability partnerships are equal across the
board. Picture a married couple purchasing a home. A joint liability on that
loan would stipulate that both parties are equally responsible for
repayment as well as equally in possession of the asset (i.e. the home).

d. Several Liability Partnerships

Several liability is the converse to joint liability, in which the involved
parties will settle liability disputes based on respective obligations. This is
easiest to demonstrate via an example. Assume two partners create a
business, let's say exporting wine. Partner A is in charge of sourcing,
getting great wine from around the world. Partner B is responsible for the
buyer side, and ensuring legality with the countries they are selling too.
While selling to a more conservative country, it turns out Partner B
accidentally overlooked some legal steps in the importing process.

As alcohol can be legally complex with costly mistakes, and it was

partner B's responsibility, it could be argued in a several liability case that
partner B owes 80% of the cost for that mistake. To say 100% would likely
be a little unfair, considering Partner A should be aware of the full channel.
But how much liability does each party deserve? These are difficult
questions, making this type of partnership slightly more complex.

e. Limited Liability Partnerships

Finally, there are limited liability partnerships (LLPs). In this
situation, some or all partners have limited liability, which grants it some
similarity with a corporation. LLPs do not hold each partner responsible for
the financial and legal mistakes of the other partners. In some countries,
LLPs must have a central GP with unlimited liability to put this risk
somewhere (see limited partnerships). This format is quite popular among
certain high-end services, such as law and accounting. It allows
collaborative work while maintaining independence in regards to liability.

Like most legally complex concepts, in the United States in

particular, LLP rulings can vary significantly from area to area.
Understanding which liabilities are limited and which are not is important
information to have before entering into a partnership.

The characteristics of the partnership

1. Strive together (Mutual Agency)
2. Duration is limited (Limited Life)
3. Withdrawal of capital or the death of a member automatically
dissolve the alliance
4. The responsibility is not limited (Unlimited Liability)
5. The responsibility of a member is not limited to the amount of
invested capital. If in certain circumstances the company can not
pay its debts because wealth is not enough, then the lender is
entitled to charge on one of the alliance members.
6. Having a part / right in the communion (Ownership of an Interest in
a partnership)
7. Members who invest his fortune in partnership equates to surrender
his right to to try and use his wealth in achieving the purpose of
fellowship. The rights granted to this alliance gives the same rights
as other members to lead and run a business alliance.
8. Taking part partnership profit
9. The magnitude of the amount of benefit of each member in
accordance with the agreement of the members. It could be among
the members do not have the capital in the communion but he
donate energy or expertise to also get part of the profit in
accordance with the agreement. An agreement was made to split
the profits itself, does not constitute a form of communion.

Advantages of Partnerships

a) Partnerships are relatively easy to establish; however time should

be invested in developing the partnership agreement

b) With more than one owner, the ability to raise funds may be
increased

c) The profits from the business flow directly through to the partners'
personal tax returns
 d) Prospective employees may be attracted to the business if given
the incentive to become a partner

e) Usually the business will benefit from partners who have

complementary skills

There are disadvantages of a partnership

a) Including unlimited liability

b) All business debts are personal debts; reconciling partner
disagreements and action
c) Each partner is responsible for the actions of all the others; sharing
of profits
d) All money earned has to be shared and distributed to the partners
per the articles of partnership; and limited lifespan
e) The partnership ends when a partner dies or withdraws.

III. Corporation

A business that is a legal entity created by the state whose assets

and liabilities are separate from its owners. While there are also public
corporations,who stock (and ownership) are traded on a public stock
exchange,most small businesses are (or at least start as) private
corporations. A private corporation is owned by a small group of people
who are typically involved in managing the business. Forming a
corporation requires developing a legal document called the Articles of
Incorporation and submitting them to the state in which the corporation
wishes to reside.
Types of corporations exist in the United States:

C Corporations
C corporation refers to any corporation that, under United States
federal income tax law, is taxed separately from its owners . A C
corporation is distinguished from an S corporation, which generally is not
taxed separately. Most major companies (and many smaller companies)
are treated as C corporations for U.S. federal income tax purposes. A C
corporation has no limit on the number of shareholders, foreign or
domestic. Any distribution from the earnings and profits of a C corporation
is treated as a dividend for U.S. income tax purposes. Exceptions apply to
treat certain distributions as made in exchange for stock rather than as
dividends. Such exceptions include distributions in complete termination of
a shareholder's interest and distributions in liquidation of the corporation.

S Corporations
S corporations are merely corporations that elect to pass corporate
income, losses, deductions, and credit through to their shareholders for
federal tax purposes. Like a C corporation, an S corporation is generally a
corporation under the law of the state in which the entity is organized. For
federal income tax purposes, however, taxation of S corporations
resembles that of partnerships. Thus, income is taxed at the shareholder
level and not at the corporate level. Payments to S shareholders by the
corporation are distributed tax-free to the extent that the distributed
earnings were not previously taxed. Also, certain corporate penalty taxes
(e.g., accumulated earnings tax, personal holding company tax) and the
alternative minimum tax do not apply to an S corporation. In order to make
an election to be treated as an S corporation, the following requirements
must be met:

1. Must be an eligible entity (a domestic corporation, or a limited

liability company which has elected to be taxed as a corporation).

2. Must have only one class of stock.

3. Must not have more than 100 shareholders.

Limited Liability Company (LLC)

An LLC is a flexible form of enterprise that blends elements of
partnership and corporate structures. It is a legal form of company that
provides limited liability to its owners in the vast majority of United States
jurisdictions. The primary characteristic an LLC shares with a corporation
is limited liability, and the primary characteristic it shares with a partnership
is the availability of pass-through income taxation. It is often more flexible
than a corporation, and it is well-suited for companies with a single owner.

Nonprofit Organization
A nonprofit organization is an organization that uses surplus
revenues to achieve its goals rather than distributing them as profit or
dividends. While not-for-profit organizations are permitted to generate
surplus revenues, they must be retained by the organization for its self-
preservation, expansion, or plans.

Structure of Corporation

Corporate structure consists of various departments that contribute

to the company's overall mission and goals. The Marketing department is
considered by some business professionals as the most important entity in
the corporate structure. Without this department, sales or new customers
cannot be realized. The Finance department is also vitally important, as it
is responsible for acquiring capital used in running an organization. Other
segments of corporate structure may consist of the Accounting
department, Human Resources department, IT department, and the
Operational aspect of the particular company. These main six corporate
departments represent the major managing resources within a publicly
traded company; though there are often smaller departments either within
the major segments or in autonomous form.

Another way a corporate structure can be defined is by business

divisions. A division of a business is a distinct part of the firm, however the
company is legally responsible for all of the obligations and debts of each
division. In a large organization, various parts of the business may be run
by different subsidiaries, and a business division may include one or many
subsidiaries. Each subsidiary is a separate legal entity owned by the
primary business or by another subsidiary in the hierarchy. Often a
division operates under a separate name and is the equivalent of a
corporation or limited liability company that obtains a fictitious name or a
"doing business as" certificate..

Characteristics of a corporation

a) Unlimited life .
b) Limited liability .
c) Separate legal entity .

d) Relative ease of transferring ownership rights .

e) Professional management .
f) Ease of capital acquisition.
g) Government regulations .

Advantages of a corporation
a) Unlimited commercial life. The corporation is an entity of its own
and does not dissolve when ownership changes.

b) Greater flexibility in raising capital through the sale of stock.

c) Ease of transferring ownership by selling stock.

d) Limited liability. This limited liability is probably the biggest

advantage to organizing as a corporation. Individual owners in
corporations have limits on their personal liability. Even if a
corporation is sued for billions of dollars, individual shareholder's
liability is generally limited to the value of their own stock in the
corporation.

Disadvantages of a corporation

a) Regulatory restrictions. Corporations are typically more closely

monitored by governmental agencies, including federal, state, and
local. Complying with regulations can be costly.

b) Higher organizational and operational costs. Corporations have to

file articles of incorporation with the appropriate state authorities.
These legal and clerical expenses, along with other recurring
operational expenses, can contribute to budgetary challenges.

c) Double taxation. The possibility of double taxation arises when

companies declare and pay taxes on the net income of the
corporation, which they pay through their corporate income tax
returns. If the corporation also pays out dividends to individual
shareholders, those shareholders must declare that dividend
income as personal income and pay taxes at the individual income
tax rates. Thus, the possibility of double taxation.
 Summary comparison
Type Responsible Continuity Management Investment
Business Sources

Sole Personal, ends because of Personal, Personal

Proprietorship unlimited death or the unlimited
owner's decision

Partnership Personal, ends because of Depending on Personal, by

unlimited death or other the agreement allies
partner decision partnership

Corporation Invested as provided for in Under the Purchase of

capital the articles of control of the shares
association, board of
perennial or directors
within a certain elected by
period shareholders
2. Businesses are exposed to its internal and external environment.
Please describe the external environment of the business.

Answer :

An external environment is composed of all the outside factors or

influences that impact the operation of business. The business must act or
react to keep up its flow of operations. The external environment can be
broken down into two types: the micro environment and the macro
environment.

Types of External Environments

1. Micro environment refers to the environment which is in direct contact

with the business organization and can affect the routine activities of
business straight away. It is associated with a small area in which the firm
functions. It is also known by the name Internal Environment or Task
Environment.

Micro environment is a collection of all the forces that are close to the
firm. These forces are very particular for the said business only. They can
influence the performance and day to day operations of the company, but
for a short term only. Its elements include suppliers,
competitors, marketing intermediaries, customers and the firm itself.

Micro Environment Factors

a) The suppliers: Suppliers can control the success of the business

when they hold the power. The supplier holds the power when they
are the only or the largest supplier of their goods; the buyer is not
vital to the suppliers business; the suppliers product is a core part
of the buyers finished product and/or business.

b) The resellers: If the product the organisation produces is taken to

market by 3rd party resellers or market intermediaries such as
retailers, wholesalers, etc. then the marketing success is impacted
 by those 3rd party resellers. For example, if a retail seller is a
reputable name then this reputation can be leveraged in the
marketing of the product.

c) The customers: Who the customers are (B2B or B2C, local or

international, etc.) and their reasons for buying the product will play
a large role in how you approach the marketing of your products
and services to them.

d) The competition: Those who sell same or similar products and

services as your organisation are your market competition, and they
way they sell needs to be taken into account. How does their price
and product differentiation impact you? How can you leverage this
to reap better results and get ahead of them?

e) The general public: Your organisation has a duty to satisfy the

public. Any actions of your company must be considered from the
angle of the general public and how they are affected. The public
have the power to help you reach your goals; just as they can also
prevent you from achieving them.

2. Macro Environtment, The general environment within the economy

that influences the working, performance, decision making and strategy of
all business groups at the same time is known as Macro Environment. It is
dynamic in nature. Therefore it keeps on changing.

It constitutes those outside forces that are not under the control of
the firm but have a powerful impact on the firms functioning. That is why, it
is also termed as an external environment which consists of individuals,
groups, organizations, agencies and others with which the firm deals
during the course of its business.

Macro Environment Factors

Demographic forces: Different market segments are typically

impacted by common demographic forces, including country/region;
age; ethnicity; education level; household lifestyle; cultural
characteristics and movements.

Economic factors: The economic environment can impact both the

organisations production and the consumers decision making
process.

Natural/physical forces: The Earths renewal of its natural resources

such as forests, agricultural products, marine products, etc must be
 taken into account. There are also the natural non-renewable
resources such as oil, coal, minerals, etc that may also impact the
organisations production.

Technological factors: The skills and knowledge applied to the

production, and the technology and materials needed for production
of products and services can also impact the smooth running of the
business and must be considered.

Political and legal forces: Sound marketing decisions should always

take into account political and/or legal developments relating to the
organisation and its markets.

Social and cultural forces: The impact the products and services
your organisations brings to market have on society must be
considered. Any elements of the production process or any
products/services that are harmful to society should be eliminated
to show your organisation is taking social responsibility. A recent
example of this is the environment and how many sectors are being
forced to review their products and services in order to become
more environmentally friendly.

Comparison Chart
Basis for
Micro Environment Macro Environment
Comparison

Micro environment is Macro environment refers to

defined as the nearby the general environment, that
Meaning
environment, under which can affect the working of all
the firm operates. business enterprises.

Alternatively
Internal Environment External Environment
known as

COSMIC, i.e. Competitors, PESTLE, i.e. Population &

Organization itself, Demographic, Economic,
Elements Suppliers, Market, Socio-Cultural, Technological,
Intermediaries and Legal & Political and
Customers. Environmental.

Nature of
Specific General
elements

Are these
factors Yes No
controllable?
 Basis for
Micro Environment Macro Environment
Comparison

Influence Directly and Regularly Indirectly and Distantly

3. Tony Fernandez is said to be a succesful entrepreneur with his Air Asia.

What are the characteristics of entrepreneur that you know? Please
Explain them in details!

Answer :

An entrepreneur is an individual who, rather than working as an

employee, runs a small business and assumes all the risks and rewards of
a given business venture, idea, or good or service offered for sale. The
entrepreneur is commonly seen as a business leader and innovator of new
ideas and business processes.

Entrepreneurs play a key role in any economy. These are the

people who have the skills and initiative necessary to take good new ideas
to market and to make the right decisions that lead to profitability. The
reward for taking the risk is the potential economic profits the entrepreneur
could earn.

Characteristics of entrepreneur

1. Passion & Motivation

If there's one word that describes the fundamental trait in an

entrepreneurship, it would be passion.

o Is there something that you can work on over and over again,
without getting bored?

o Is there something that keeps you awake because you have not
finished it yet?
 o Is there something that you have built and want to continue to
improve upon, again and again?

o Is there something that you enjoy the most and want to continue
doing for the rest of your life?

Your demonstration of passion and motivation will determine your

success in any entrepreneurial venture. From building and implementing a
prototype, to pitching your idea to venture capitalists, success is a function
of passion and determination. (For more, see: Turn Your Passion into a
Profitable Side Business.)

2. Risk Taking

Entrepreneurs are risk takers ready to dive deep into a future of

uncertainty. But not all risk takers are successful entrepreneurs. What
differentiates a successful entrepreneur from the rest in terms of risk?
Successful entrepreneurs are will to risk time and money on unknowns,
but they also keep resources, plans and bandwidth for dealing with
"unknown unknowns" in reserve. When evaluating risk, a successful
entrepreneur will ask herself, is this risk worth the cost of my career, time
and money? And, what will I do if this venture doesn't pay off?

3. Self-belief, Hard work & Disciplined Dedication

Entrepreneurs enjoy what they do. They believe in themselves and

are confident and dedicated to their project. Occasionally, they may show
stubbornness in their intense focus on and faith in their idea. But the flip
side is their demonstrated discipline and dedication.

4. Adaptability & Flexibility

Its good to be passionate or even stubborn about what you do. But
being inflexible about client or market needs will lead to failure.
Remember, an entrepreneurial venture is not simply about doing what you
believe is good, but also making successful business out of it. Market
needs are dynamic: changes are a recurring phenomenon. Successful
entrepreneurs welcome all suggestions for optimization or customization
that enhances their offering and satisfies client and market needs. A
product you develop for yourself alone may qualify as a hobby, but a
product for the market should satisfy market needs.

5. Understand Your Offering And Its Market

Entrepreneurs know their product offering inside and out. They also
know the marketplace and its dynamics inside and out. Remaining
unaware of changing market needs, competitor moves and other external
factors can bring even great products to failure (for example, Blockbuster).
6. Money Management

It takes time to get to profitability for any entrepreneurial venture.

Till then, capital is limited and needs to be utilized wisely. Successful
entrepreneurs realize this mandatory money management requirement
and plan for present and future financial obligations (with some additional
buffer). Even after securing funding or going fully operational, a successful
businessman keeps a complete handle on cash flows, as it is the most
important aspect of any business.

7. Planning (But not Over-planning)

Entrepreneurship is about building a business from scratch while

managing limited resources (including time, money and personal
relationships). It is a long-term commitment, and attempting to plan as
much as possible at the beginning is a noble impulse. In reality, however,
planning for everything and having a ready solution for all possible risks
may prevent you from even taking the first step. Successful entrepreneurs
do keep some dry powder in reserve, but more importantly they maintain a
mindset and temperament to capable of dealing with unforeseen
possibilities.

Do a feasibility analysis; identify time and capital thresholds; take

the deep dive with your limited resources. If your thresholds are crossed,
look for alternatives and be prepared to take the next exit.

8. Networking Abilities

How do you tap your network for solutions? Many people seek
comfort in commiseration: friends, colleagues and neighbors are happy to
complain with you about "the global slowdown, poor demand, or unfair
competition; but that won't improve the bottom line. What do successful
entrepreneurs do? They reach out to mentors with more experience and
extensive networks to seek valuable advice.

Having such networking abilities, including more experienced

mentors, is a key characteristics of successful entrepreneurs.

9. Being Prepared to Take the Exit

Not every attempt will result in success. The failure rate of

entrepreneurial ventures is very high. At times, it is absolutely fine to take
the practical exit route and try something new, instead of continuing to
make sunk cost investments in the same venture. Many famous
entrepreneurs weren't successful the first time around. But they had the
serenity and foresight to know when to cut their losses.

10. Entrepreneurs Doubt Themselves But Not Too Much

 You may ask yourself, am I an entrepreneur? And the very question
may put you in doubt about the answer. Even if you don't have the flair of
Steve Jobs or the hair of Elon Musk, if you have the courage to ask
yourself intimidating questions Can I do this? Do I want to do this? you
have the stuff to be an entrepreneur.

4. The preparation of staff in an organization is one of the crusial steps in

managing human resources.Please explain this process !

Answer :

An induction programme (also known by the preparation

process of new staff in an organization) is the process used within
many businesses to welcome new employees to the company and
prepare them for their new role.

Induction training should, according to TPI-theory, include

development of theoretical and practical skills, but also meet interaction
needs that exist among the new employees.

An Induction Programme can also include the safety training

delivered to contractors before they are permitted to enter a site or begin
their work. It is usually focused on the particular safety issues of an
organisation but will often include much of the general company
information delivered to employees.

Benefits
An induction programme is an important process for bringing staff
into an organisation. It provides an introduction to the working environment
and the set-up of the employee within the organisation. The process will
cover the employer and employee rights and the terms and conditions of
employment. As a priority the induction programme must cover any legal
and compliance requirements for working at the company and pay
attention to the health and safety of the new employee.
 An induction programme is part of an organisations knowledge
management process and is intended to enable the new starter to become
a useful, integrated member of the team, rather than being "thrown in at
the deep end" without understanding how to do their job, or how their role
fits in with the rest of the company.

Good induction programmes can increase productivity and reduce

short-term turnover of staff. These programs can also play a critical role
under the socialization to the organization in terms of performance,
attitudes and organizational commitment. In addition well designed
induction programmes can significantly increase the speed to competency
of new employees thus meaning they are more productive in a shorter
period of time.

A typical induction programme

A typical induction programme will include at least some of the following:

1. any legal requirements (for example in the, some Health and Safety
training is obligatory)

2. any regulatory requirements (for example in the banking sector

certain forms need to be completed)

3. introduction to terms and conditions (for example, holiday

entitlement, how to make expense claims, etc.)

4. a basic introduction to the company, and how the particular

department fits in

5. a guided tour of the building

6. completion of government requirements (for example in submission

of a P45 or P60)

7. set-up of payroll details

8. introductions to key members of staff

9. specific job-role training

Best practice
In order to fully benefit the company and employee, the induction
programme should be planned in advance. The timetable should be
prepared, detailing the induction activities for a set period of time (ideally
at least a week) for the new employee, including a named member of staff
who will be responsible for each activity. This plan should be circulated to
everyone involved in the induction process, including the new starter. If
possible it should be sent to the new starter in advance, if not co-created
with the new starter

It is also considered best practice to assign a buddy to every new

starter. If possible this should be a person who the new starter will not be
working with directly, but who can undertake some of the tasks on the
induction programme, as well as generally make the new employee feel
welcome. (For example, by ensuring they are included in any lunchtime
social activities.)

SOURCE

Buku Bisnis, by Ricky W.Griffin / Ronald J. Ebert

Introduction to Business ( International Student Edition) Book, by Jeff

Madura

Source: Boundless. Types of Business Ownership. Boundless Business.

Boundless, 26 May. 2016. Retrieved 05 Oct. 2016 from
https://www.boundless.com/business/textbooks/boundless-business-
textbook/types-of-business-ownership-6/

http://www.studyfinance.com/lessons/busorg/advantages and
disadvantage of business ownership

http://keydifferences.com/difference-between-micro-internal-and-macro-
external-environment.html#ixzz4MFWOVE6w

Entrepreneur Definition | Investopedia

http://www.investopedia.com/terms/e/entrepreneur.asp#ixzz4MFZnM8xH
 MIDTERM EXAM
INTERNATIONAL CLASS PALEMBANG
INTRODUCTION TO BUSINESS
Name : Muhammad Defa Wiria Ghazali

NIM : 01031281621100