CORPORATE PROMOTER TYPES OF PROMOTERS - Promoters may be classified into the following types.! PROFESSIONAL PROMOTERS - They are experts who specialise in company promotion.They float the company and hand it over to the shareholders or their representatives.Promotion is their main profession or occupation.! OCCASIONAL PROMOTERS - There promoters take interest in floating some companies.They are not engaged in promotion work on a regular basis.They take up the promotion of some company and once it is over they go to their original profession.For instance, engineers, lawyers etc. may float some companies.! ENTREPRENEUR PROMOTERS - They are both promoters and entrepreneurs. They conceive idea of a new business unit, do the groundwork to establish it and subsequently become a part of the management.! FINANCIER PROMOTERS - Some financial institutions, like investment banks or industrial banks, may take up the promotion of a company with a view to finding opportunities for investment.! FUNCTIONS OF PROMOTERS - The various functions of a promoter may be outlined as follows.! DISCOVERY Of a Business Idea - The first stage in company promotion is the conception of a new idea. It is the promoter who conceives the idea of setting up a business. If makes an assessment of the viability of a particular business.! DETAILED Investigation - Promoters undertakes a detailed investigation of the viability, profitability and future prospects of the growth of the proposed activity. To assist then in this venture, they seek the help of specialists such as chartered Accountants, Cost Accountants, Company Secretary, Engineers. Organisations engaged in market research and other specialised agencies. Specialists are in a position to make an objective analysis of their own areas which may help the promoters. Decisions have to be taken regarding the size, location, layout, man power etc.! ASSEMBLING The Factors Of Production - If the proposed endeavour gives promise of success and the promoter is willing to undertake the risk of forming the business, step must be taken to assemble various factors of production viz, land, labour, capital and managerial personnel. Assembly of resources involves making contracts for the purchase of material, land, machinery, etc.! ENTERING Into Preliminary Contracts - The promoter enters into contracts with different parties before the registration of the company. After registration, the company approves these contracts.! HAVE A NICE DAY ,,,,,,,,,,,,,,,,,,,,,,,,,,,, FRIENDS !
Posted on: Sat, 18 Oct 2014 06:27:09 +0000
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