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Mergers and Acquisitions

  • Date Submitted: 05/07/2010 01:06 AM
  • Flesch-Kincaid Score: 50 
  • Words: 2759
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Introduction:

A Business also called a company or an enterprise is a legal organization which is established to provide goods and services to customers to earn profits which will increase the wealth of the owners and the growth of the business itself.
There are different types of business organizations
1)Unincorporated business:These are the business which include sole traders and partnerships where they have no separate legal identity and the owner is responsible for the working of the business .The owner take sthe full responsibility for the company profits and losses.
2)Incorporated business:These are the business which include private and public limited companies where they have a separate legal identity from the owner and the owners are held responsible only up to the amount of money they have invested in to the business for any kind of debts.
In order to make profit and grow the company has to go through various stages starting from the survival of the business to the growth of the organization.
The stages of the growth of the company involves 1)Survival 2)Break Even 3)Make Profit 4) Profit Maximisation 5)Growth.
1)Survival: Business are born with a product but die with out customers”. For any business to survive in the market the enterprise should focus mostly on the customers .At this stage the company doesn’t look for the profits and strives to be in the competition in the market by emphasizing more on the product and the service .At this stage the business concentrates on a specific geographical area by producing a specialist item or service and have the benefit from government programs to survive the business.
2)BreakEven: It is a point where a business reaches no loss no profit .The profit obtaines by the company covers the expenditure incurred by the company.All the business try to

keep the breakeven point low and try to achieve it as soon as possible.The business is under loss before it reaches the breakeven point.
3)Make Profit: Once...

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