An absentee business owner is one who does not personally manage the business but owns it or does not live in the community in which the business operates. Studies show that money spent locally circulates back into the community three times as much when it is not spent with an absentee-owned business. Local currency has been implemented in some communities as a countermeasure to this effect. Neighborhood investment, in which members of the community are given opportunities to become partial owners of new developments, is another method. In Brazil, studies found that more than a third of the profits generated from tourism were exported to absentee business owners. In Vietnam, the economic expansion of the 1990s was associated with a rise in absentee business owners. There has also been concern that tourism profits in Southern Africa go to absentee business owners. Absentee business owners can be more vulnerable to theft by employees, especially when recordkeeping is turned over to employees, unless proper internal controls and review are implemented. In the United States, many business-owning military reservists have become absentee business owners during long tours of duty in Iraq and Afghanistan.
Cross ownership is a method of reinforcing business relationships by owning stock in the companies with which a given company does business. Heavy cross ownership is referred to as circular ownership. In the US, "cross ownership" also refers to a type of investment in different mass-media properties in one market.
There are many ways in which a business may be owned under the legal system of England and Wales. Different types of ownership are suitable for organisations depending on the degree of control the owners wish to have over the business. The choice of ownership method also relates to the organisations ability to raise funds for the business activities. The ownership method also alters the rules under which the company must be administered. Because ownership is key part of business planning it is essential to take into consideration: Financial forecasting Appropriate insurance. The legal obligations for the owners. The three main forms of ownership for starting business are: Sole-trader, Partnership and Limited company.
A family business is a commercial organization in which decision-making is influenced by multiple generations of a family, related by blood or marriage or adoption, who has both the ability to influence the vision of the business and the willingness to use this ability to pursue distinctive goals. They are closely identified with the firm through leadership or ownership. Owner-manager entrepreneurial firms are not considered to be family businesses because they lack the multi-generational dimension and family influence that create the unique dynamics and relationships of family businesses.
Foreign ownership or control of a business or natural resource in a country by individuals who are not citizens of that country or by companies whose headquarters outside that country. In general, foreign ownership occurs when multinational corporations, which do business in more than one country, inject long-term investments in a foreign country, usually in the form of foreign direct investment or acquisition. If a multinational corporation acquires at least half of a company, the multinational corporation becomes a holding company, and the company receiving the foreign investment becomes a subsidiary. Also, foreign ownership can occur when a domestic property is acquired by a foreign individual. An example is an Indian businessman buying a house in Hong Kong.
Foreign ownership of companies of Canada has long been a controversial political issue in Canada. Concerns regarding foreign ownership generally pertain to ownership of previously Canadian assets by individuals or companies based in countries outside of Canada. The exact definition of "foreign-owned" is the subject of debate. This article uses the working definition for foreign ownership. Historically, foreign ownership was a political issue in Canada in the late 1960s and early 1970s, when it was believed by some that U.S. investment had reached new heights though its levels had actually remained stable for decades, and then in the 1980s, during debates over the Free Trade Agreement. But the situation has changed, since in the interim period Canada itself became a major investor and owner of foreign corporations. Since the 1980s, Canadas levels of investment and ownership in foreign companies have been larger than foreign investment and ownership in Canada. In some smaller countries, such as Montenegro, Canadian investment is sizable enough to make up a major portion of the economy. In Northern Ireland, for example, Canada is the largest foreign investor. By becoming foreign owners themselves, Canadians have become far less politically concerned about investment within Canada. Of note is that Canadas largest companies by value, and largest employers, tend to be foreign-owned in a way that is more typical of a developing nation than a G8 member. The best example is the automotive sector, one of Canadas most important industries. It is dominated by American, German, and Japanese giants. Although this situation is not unique to Canada in the global context, it is unique among G-8 nations, and many other relatively small nations also have national automotive companies.
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