Business Makers

The causes of various types of pollution are given below:

• Air Pollution: Smoke and other chemicals from industries and carbon monoxide form vehicles cause pollution of air. Emission of smoke, gases, fumes, dust and ash leads to or pollution. These harmful substances reduce the quality of air.
• Water Pollution: Business firms and people dump industrial effluents, waste and chemicals into jives, streams and lakes. As a result water gees polluted.
• Land Pollution: Dumping of toxic waste and garage gausses pollution of land. Excessive use of fertilizers, chemicals and pesticide also pollutes the soil. As a result land becomes infertile and no grass or plants can grow. It is necessary to restore the quality of land that has already been damaged. It is also essential to prevent future pollution of land by adopting new methods of disposal of solid waste.
• Noise Pollution: Traffic and industries create noise in cities.

• Pollution means the injection of harmful substance into the environment. Since independence, growing population and rapid growth of industries in India have crated serious environmental problems. For example, Delhi alone has more than 12.355 industries. The smoke and smell emanating from these industries are polluted their. Such pollution affects the health of people. It has been estimated that more than 5000 people die every year in India due to air pollution. Most of the industries dump their liquid waste into rivers, canals and underground water which leads to pollution of drinking water. Industries also cause noise pollution.

• The amount of environmental pollution depends upon the type of pollutant; the amount of pollutant disposed of into the environment and the distance of a place form the sources of pollution.

A business owes the following responsibilities to the government:

To comply voluntarily with the laws passed by the government.
To pay taxes and duties honestly and in time.
To make constructive suggestions regarding formulation of policies which have a bearing on business?
To cooperate with the executive organs of the government regarding proper implementation of laws and policies.
To cooperate with the executive organs of the government regarding proper implementation of laws and policies.
To support the efforts of the government for improving the quality of life of people and in solving the pressing national problems in the country.
To plan and establish new endures joint rural and backward areas in the interest of balanced regional development of the country.
To continue towards rescue and relief work in times of national calamity or disaster such s droughts, floods, earthquake, etc.

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Traditionally the role of commercial banks in the field of long-term finance to industry has been negligible. Therefore, the Government has set up a number of special financial institutions in the country to provide long-term finance to business enterprise The IFCI, IDBI, ICICI; Sacs are the main among such financial institutions. The term-lending institutions or development banks have become a major source of fence for flotation o new concerns as well as for the modernization and expansion existing oceans. The supplement other sources of fiancé and fill gaps. They provide fennec Goth in the form of equity and debt. These institutions provide both direct (loans) and indirect (purchase and underwriting of securities) assistance. These institutions re not simply financial institutions. They also provide promotional, technician managerial services. They take initiative on locating and filling gaps in the country’s industrial structure. In addition to well-known development banks in the country, the LIC, General Insurance Corporation, NIDC, NSIC, etc. also help in providing finance to industry.

The main advantages of institutional finance are as follows: (i) both risk as well as loan capital is available. Special financial institutions provide underwriting and direct subscript triton facilities also. (ii) New companies which may find it difficult to raise finance form the public can get finance from these institutions. Assistance is available when recourse to normal sources is impracticable or unprofitable. (iii) As these institutions carry out a thorough investigation before granting assistance to a concern, relationship with them help it increase the creditworthiness of a company. (iv) Loans and guarantees in foreign currency and deferred payment facilities are available for the import of required machinery and Kauai mint. (v) The rate of interest and payment procedures is convenient and economical. Facilities for repayment in easy installments are made available to deserving concerns. (vi) Along with finance, a company can obtain expert advice and guidance for the successful planning and administration of projects.

However, institutional financing may involve him following limitations: (i) the concern requiring fiancée form special financial institutions has tourist itself to a thorough investigation. A number of formalities and documents are involved. (ii) Many deserving concerns may fail to get assistance for want of security and other conditions laid own by these institutions. (iii) Sometimes, these institutions place restrictions on the autonomy o management. They lay down a convertibility clause inland agreements. In seedcases, they insist on the appointment of their nominees on the Board of Directors of the debtor company.

A private company combines the following advantages of partnership and public company

• Large capital: A private company can raise larger financial resources than a partnership.

• Limited Liability: Like a public compan7y, the liability of members in private company is limited to the face value of shares held by them. Unlike a partnership, the risk of members is limited.

• Continuity: A partnership is dissolved on the death, insolvency and lunacy of But a private company like a public company continues to exist irrespective of these events.

• Freedom from Legal Formalities: A private company is free from several legal formalities applicable to a public company. As in the case of partnership, three is flexibility of operations in a privet company.

• Close Supervision and Control: The membership and control of a private company rests with a small group of relatives and friends. Like a partnership, it enjoys benefits of prompt decisions, secrecy and effective control.

Thus, a private company is a mixture of partnership and public company. It enjoys ease of formation, flexibility of operations and personal control which are available in a partnership. At the same time, the main benefits of a public company such as limited liability and stability are available to Privet Company.
Private company enables a small group of persons to control the management without undertaking the risk of unlimited liability. Therefore, it is an ideal form of organization for people who seek personal control of business with the benefit of limited liability. On the others hand, a public company is an ideal form of organization for large scale enterprises like steel, automobiles, computes, etc. because huge capital can be secured form the general public.

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