Corporate and business law

1. TOPIC: CORPORATE AND BUSINESS LAW
ECONOMIC THEORIES AND THEIR DIFFERNCES

2. An economic theory is a set of ideas and principles that outline how
different economies function. Depending on their particular role, an
economist may employ theories for different purposes. For instance, some
theories aim to describe particular economic phenomena, such as inflation
or supply and demand, and why they occur.

3. What is the theory of the Firm?
In neoclassical economics, an approach to economics focusing on the
determination of goods, outputs, and income distributions in markets through
supply and demand—the theory of the firm is a microeconomic concept that
states that a firm exists and make decisions to maximize profits. A firm
maximizes profits by creating a gap between revenue and costs.
Key Takes way:
 In neoclassical economics, the theory of the firm is a microeconomic concept
that states that a firm exists and makes decisions to maximize profits.
 The theory of the firm influences decision-making in a variety of areas,
including resource allocation, production techniques, pricing adjustments, and
the volume of production.
 Modern takes on the theory of the firm sometimes distinguish between long-
run motivations, such as sustainability, and short-run motivations, such as
profit maximization.

4.  Transaction Cost Theory:
Jensen and Meckling adopted the view of Alchian and Demsetz organizations
such as firms, non-profit institutions and governments agencies consist of a
nexus of contracts (internal or external).
With an internal contract, the firm decides to provide the requirements from
within the organization with an external contract; provisions are delivered by a
third party.
This refers to the classical make or buys decision. Choice a firm must make
whether it should make an intermediate good in-house or secure it in some
markets or via contacts.
Make or buy decision also refers to the fundamental questions:
 Why do we have firms?
 How do they function?

5.  Market Power Theory:
A firm tries to establish a dominant market presence in an industry by
undertaking foreign direct investment vertical integration-extension of
company activities into stages of production that provide a firm's inputs or
absorb its output.
 Theory of Internalization:
Internalization theory was developed to provide an economic rationale for
the existence of MNEs. This theory rests on two general axioms (Buckley,
1988) firms choose the least cost location for each activity they perform;
Firms grow by internalizing markets up to the point where the benefits of
further. Internalization is outweighed by the costs.

6.  RESULT:
Because each business, organization, and corporation has a unique set of
working conditions, some of which are tied to manufacturing and others to
services, each uses the theory that is necessary to address those conditions
in order to address problems and make a profit.

7. MAKE A LIST OF COMPONENT OF GOVERNING
RIGHTS, RELATING, CONDUCT OF PERSON,
COMPANIES, ORGANIZATION AND BUSINESS?

8. What is a governing body?
A governing body is the group of people given the power and authority to
form the policy and steer the overall direction of an organization. Its
members can be elected to that position of power by voting, or selected
through nomination by Aboriginal and Torres Strait Islander decision-
making processes. Individuals on the governing body of an organization
may be selected or elected because of their land-ownership credentials,
special cultural knowledge, age or gender, or because of their position in
their group, community, region or nation.

9.  Group Members: Role of the group members is to elect or nominate the
people on an organization’s governing body. The governing body then
represents the members.
 Governing Body: Role is to represent, plan strategic direction, set the
organization’s goals, lead the organization, make the policies, oversee
financial direction and accountability, supervise and evaluate management,
inspire and role model for staff.
 Management: Role is to implement strategic plans, goals and policies made
by governing body, administration, financial management, develop staff
policies, and organize, supervise and evaluate the staff.
 Staff: Role is to perform duties under the instructions and direction of
management, support governing body in their roles.

10.  The primary job of the governing body is to protect the rights, interests
and wellbeing of all the members on whose behalf the organization is
working.
 The governing body as a whole does this by making sure the organization
runs smoothly and can achieve the goals and objectives it has promised to
deliver to its members.
 It does that by collectively carrying out four main roles and
responsibilities, summarized below by Neil Sterritt, Gitxsan leader from
British Columbia in his Canadian First Nations Governance Handbook.

11.  The chair represents the organization to the members and the outside
world. The chair’s role is very important for the effective and legitimate
governance of an organization.
 “How often have you been asked to chair a meeting only to realize you do
not know how?
 You are not alone. This is a common problem for both Aboriginal and non-
Aboriginal people who have been elected or appointed to councils or
boards.”Chairing a meeting requires confidence, skills and training—it
doesn’t just happen. The chair is like the captain of the football team: an
experienced leader whose job it is to bring everyone’s individual skills
together and encourage members to play as a team, develop new skills
and kick the winning goals.

12. The chair of a governing body has to:
 Lead the governing body.
 Help steer the direction and performance of the organization.
 Earn the respect of other members of the governing body.
 Not dominate the meeting with His/hers own opinions.
 Listen to everyone in the meeting and encourage contributions by
everyone initiate effective governance practices within the governing
body.
 Be able to mediate when conflict arises.
 Promote good relationships with members and the community.
 Be a role model and promote high standards of behavior and practice.
 Ensure that full, accurate information is provided at meetings.

13.  CONCLUSION:
Businesses, corporations, organizations, and people connected to the
government all claim to have different rights to assume responsibility and
carry out their roles, these rights are outlined in legal papers.

14. KEYWORD RESEARCH

17.  KEYWORDS HISTORICAL VOLUME COMPETITION IAAT

18. THANK YOU