Business Structure in BD

1

Report on

Business Structure in Bangladesh (Course code: MGT-2218) MGT-2218)

Group 11 Section: B BBA-8th Batch

Department o Mana!ement Studies "acu#t$ o Business Studies %a!annath &ni'ersit$

October, 2014

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Group 11  Name of the Group Members: Members: Roll No

Name

B120202122

Moniruaman

B120202170

Seema Rani Monda#

B120202175

Mahmud asan

B120202176

Den *s#am

B120202177

Asana Aroe

B120202184

Tare+ Ai

Super!isor "ahmina Rita #nia $ecturer

Department o Mana!ement Studies "acu#t$ o Business studies %a!annath &ni'ersit$

Remars

3

Super!isor %or&arding

,,,,,,,,,,,,,,,,,

$ecturer "ahmina Rita #nia

Department o Mana!ement Studies "acu#t$ o Business Studies %a!annath &ni'ersit$

'eclaration

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* assure that a## the inormation in this report is re#ia#e. true and consistent /ith the usiness structure in Ban!#adesh0 "or preparin! this report * ha'e co##ected inormation rom the /esite and the oos /hich * mentioned in reerences0 * tae the entire responsii#it$ or such unintended errors and omissions0

………………………………………..

Den *s#am n Beha# o Group11

,,,,,,,,,, Date

Acknowledgment

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Praise is to almighty Allah who has given me the strength and opportunity to complete this report. I acknowledge my honourable Supervisor  Tahmina Rita Anika, Lecturer,Department of Management Studies,Faculty of Business Studies,Jagannath University, who provided me all out help, supports and guidelines in preparing this

report and all of my group menbers who give company to prepare this report. Without their inspiration and help it could be very difficult to prepare this report.

'en (slam

n Beha# o Group11

)*ecuti!e Summar+

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Bangladesh is a combination of competitive market, businessfriendly environment and cost structure that can give the best returns. Bangladesh offers a welleducated, highly adaptive and industrious workforce with the lowest wages and salaries in the region. !".#$% of the population is under &!, providing a youthful group for recruitment. 'he country has consistently developed a skilled workforce catering to investors needs. (nglish is widely spoken, making communication easy. Bangladesh is strategically located ne)t to India, *hina and AS(A+ markets. Bangladesh has proved to be an attractive investment location with its -. million population and consistent economic growth leading to strong and growing domestic demand. (nergy prices in Bangladesh are the most competitive in the region. Bangladesh offers the most liberal /0I regime in South Asia, allowing $$% foreign e1uity with unrestricted e)it policy, easy remittance of  royalty, and repatriation of profits and incomes. Bangladesh offers e)portoriented industrial enclaves with infrastructural facilities and logistical support for foreign investors. s a private enterprise.

"able o ontents

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Serial No.

"opics

/age No

1

*ntroduction

38

2

The countr$

38-34

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Meanin! o usiness

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C#assiication o usiness

7

"eatures o usiness sectors in BD

13



*mportance o usiness in BD

1

9

"orms o usiness irms in BD

18-25

8

ther orms o usiness in BD

26

ro#ems o usiness or!aniation in BD

27

4 13

Recommendations

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Reerences

Introduction

34

34-13

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Business plays a ma2or role within our society. It is a creative and competitive activity that continuously contributes to the shaping of our society. By satisfying the needs and wants people cannot satisfy themselves, businesses improve the 1uality of life for  people and create a higher standard of living. It is a way for individuals to provide goods and services to consumers, and at the same time, produce a profit for themselves. Businesses are not only important because they provide goods and services for  consumers, but they also improve the economy and increase 2obs for people within society which is an additional fact producing a higher standard of living. 'o measure our  societies standard of living, we must look to our 34ross +ational Product3, which is the complete measure of our nations output. 5nfortunately, inflation is a ma2or problem in our nation which often reduces the 4ross +ational Product. Inflation occurs when the goods become too high within society and spending decreases.  A central function within our economic system is satisfying the needs of the consumers with the use of limited supplies. 'he purpose of a business is to combine resources such as land, labor, and capital in a way that will make them more valuable. 6perating in a political and economic climate that supports individual rights, American business has as its guiding principle the right to private ownership and profit. 'he amount of  goods produced depends upon the number of resources available for use. 'his idea is commonly known as 3Supply and 0emand3. Businesses must attempt to reach an e1uilibrium between the two which will directly impact the price of the products produced. If something is heavily demanded and at the same time, it7s resources are limited, the price of the product will rise. 'his idea of course works both ways. 'he easier it is to produce something, the cheaper it will be.

 THE COUNTRY GEOGRAPHY/STATISTICS Bangladesh is located in the Southern   Asia, bordering the Bay of Bengal with the

coastline covering !8$ km between Burma 9 India with the land boundaries -,&- km where Burma covered :# km and India covered -,$!# km. 'he time difference is 4;'&$ est.?C D$$ billion= per capita D-, Eeal growth rateC %, InflationC .#%. 'he Industries are 'e)tiles, @ute, 4arments, 'ea Processing, Paper +ewsprint, *ement, *hemical /ertiliFer, Gight (ngineering, Sugar, *eramics and Pharmacy. +atural resources are 4as, 'imber and *oal. Arable land covered !!.#:% and permanent crops covered #.$8% of total land area. Bangladesh e)ports mainly Eeady ;ade 4arments including Hnit Wear >"!% of  e)ports revenue?. 6thers includeC Shrimps, @ute 4oods >including *arpet?, Geather  4oods and 'ea. Bangladesh imports mostly Petroleum Product and 6il, ;achinery and Parts, Soybean and Palm 6il, Eaw *otton, Iron, Steel and Wheat.

Meann! o" #$%ne%%  An organiFation or economic system where goods and services are e)changed for one another or for money. (very business re1uires some form of investment and enough customers to whom its output can be sold on a consistent basis in order to make a profit. Businesses can be privately owned, notforprofit or stateowned. An e)ample of  a corporate business is Pepsi*o, while a momandpop catering business.

Cla%%&'aton o" #$%ne%% •

•

•

•

•

•

 Agriculture and mining business are concerns with the production of raw material, such as plants or minerals. /inancial businesses include banks and other companies that generate profit through investment and management of capital. Information businesses generate profits primarily from the resale of intellectual property, include movie studios, publishers, and packaged software companies. ;anufacturers produce products, from raw materials or component parts, which they then sell at a profit. *ompanies that make physical goods, such as pipe s, are considered manufacturers. Service businesses offer intangible goods or services and typically generate a profit by charging for labor or other services provided to government, other  businesses, or consumers. 6rganiFations ranging from house decorators to consulting firms, restaurants, and even entertainers are types of service business, 'ransportation businesses deliver goods and individuals from location to location.

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(eat$)e% #$%ne%% Ban!la*e%+,

%e'to)

n

Business sector has been developed after :-" and rapidly after since the declaration of privatiFation policy. Bangladesh government could realiFe that it was not possible on the part of government to do 2ustice in all sector development e1uitably and in a balanced way. 'herefore, private sector involvement was a must. With this backdrop a few characteristics of Bangladesh are pointed out below.  & # !  " 8 : $  & # !  " 8 : &$

0omestic business is emerging rapidly. A scattered corruption cases are also e)periencing. 4overnment has taken substantial measures to get black money invested. A substantial volume of e)port trade is taking place under private arrangement. Import under government arrangement is remarkable. A big number large, medium siFe, small scale industry have been set up. E;4 sector has attracted a big volume of investment. A large number of people have got employment in the business sector. uge number of business infrastructure has been established. A good number of foreign business people are involved under 2oint venture etc. scheme. Business firms are handling goods with own arrangements. ;odern transportation and communication systems are contributing. Some environmental problems are being encountered. 'echnology has occupied a ma2or part of business. 'housands of sole and partnership business firms have emerged. 0oFens of 2oint stock companies have been established. Business combinations holding companies etc. have been set up. *hambers, federation of chambers of and so on are working successfully. 4overnment is cooperating for globaliFing the business. Some hartal, strikes, blockades hamper the business activities.

In a developing society, many strength and threats may affect the business sector. 0espite business sector of Bangladesh is marching forward and growing rapidly. In future, this sector will do better, if all internal and e)ternal forces behave positively.

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-/o)tan'e Ban!la*e%+,

o"

#$%ne%%

n

(ORM O( BU-NE ENTERR-E SOLE PROPRIETORSHIP In the sole proprietorship, known alternatively as sole trader ship, the proprietor is to take all risks. Some of the favorable characteristics of a sole proprietorship business are the ease of initiation, low cost of commencement, freedom in keeping liability to certain limits, right to control, ease of winding up, minimum legal restrictions, liberty in making 1uick decisions and the like. 'he sole trader bears unlimited liability. A sole tradership business has no legal identity other than that of its owner. ;ost sole proprietors conduct small businesses such as retail shops that sell stationary, groceries, cloth, medicines, handicrafts, books, confectioneries, spare parts, and tyretube, wholesale stores. ;any operate amusement business, and service marketing such as hotels, restaurants, guesthouses or tailoring, hair dressing, road, and water transportation. Sole traderships in Bangladesh are usually classified as small, medium and large depending on the siFe of capital employed.

Principle Legislation  All the laws related to an individual are applicable to a sole proprietorship.

Features o sole proprietors!ip "usiness# a Single ownershipC 'he ownership of sole proprietorship is single. So, the takes the risk and gets the profit from business. b Gimited amount of capitalC 'he amount of capital that a sole proprietor can get together must of necessity be limited. c Gimited managerial abilityC An individual, however capable cannot be e)pected to posses full knowledge of all branches of a business and is bound to fritter away his energies in doing things could best be left to others in a partnership or a company. d (ase of formationC An individual enterprise is easy to form and simple to run. e Promptness indecision makingC Promptness in taking decisions makes efficiency.

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f

/le)ibility in operationC As the proprietor has the full control over his business and is the supreme 2udge in all matters, he can introduce changes as the e)igencies of occasion and without any delay. g Personal controlC 'he owner of sole proprietorship business can do personal control. h 'otal or undivided riskC 'he owner of sole proprietor has to bear the total and undivided risk. owever, profit comes with risk. i 5nlimited liabilityC 'he owner of sole proprietor has to bear the unlimited liability, even personally.  2 /ree from government regulationC sole proprietorship business is free from government regulation as well as there is no such law regarding sole proprietorship business. k Proprietor and the firm identicalC 'here is no difference between proprietor and the firm. So, proprietor and the firm are identical. l (asy to dissolveC It is very easy to dissolve this organiFation. A sole trader can do this in according with will at any time.

General Re$uire%ents to Start &usiness# •

• • • • •

• •

a Sole Proprietors!ip

'rade Gicense from *ity *orporation;unicipality5nion *ouncil >Gocal 4overnment Bodies? 'a)payers Identification +umber >'I+? JA' Eegistration >in the cases where applicable? IE* >in the case of business related to import? (E* >in the case of business related to e)port? GicensePermission from the authorities according to the nature of  businessprofession Bank Account ;embership of 'rade Body

 As per publication of Board of Investment >B6I?, local investor you may setup a business under several organiFational structures such as single proprietorship, partnership and limited company. In the case of a foreign investor, one may establish its business only under limited company.

Advantages: 1. Easy of formation:  An individual enterprise is easy to form.

2. Direct motivation C 'he proprietor has a direct personal interest . 3. Comlete degree of control:  As the sole proprietor is the master of his business, his

control over it is complete.

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!. "romtness in decision making:

Promptness in taking decision makes for 

efficiency. #. $le%i&ility in oeration:  As the proprietor has the full control over his business and

is the supreme 2udge in all matters, he can introduce changes as the e)igencies of  occasion demand and without any delay. '. (aintenance of secrecy: Secrecy is the vital important for the success of a small

business, and a sole trader is in an element position to keep his affairs to himself. ). Catering for individ*al tastes:  A sole trader is in a position to be in close touch with

his customers and to cater for their individual taste. +. Credit standing C 'he fact of large goodwill and wide clientele coupled with unlimited

liability are likely to prompt creditors to grant him liberal credit ,. (inim*m government reg*lation C 'he activities of a sole trader are regulated by

government and law to the minimum e)tent. 1-. Easy to dissolve: It is very easy to dissolve this organiFation. A sole trader can do

this in according with his will at any time.

Disadvantage: imited amo*nt of caital:  'he amount of capital that a sole proprietor can get

together must of necessity be limited. imited managerial a&ility:   An individual, however capable can not be e)cepted to

posses full knowledge of all branches of a business and is bound to fritter away his energies in doing thing which could best be left to others in a partnerships. /nlimited lia&ility:  'he liability of proprietor is unlimited. It is not only the assets of the

business that are liable, but also his entire personal fortune for the debts of the business. /ncertainty of contin*ity:  When the proprietor dies or is no longer able to run

business, the business may come to end. imited si0e:  A sole proprietorship business is in limited siFe or small. ack of managerial e%ected: As the members of the business are limited and

organiFation is limited, there is lack of managerial e)pected. Total or *ndivided risk:  'he owner of sole proprietor has to bear the total and

undivided risk.

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imitation of ersonal risk:  6ne person may not have all capabilities to run a sole

proprietorship business. /ns*ita&ility for large &*siness:  sole proprietorship is not suitable for large business

due to lack of capital. nsta&ility: It is very easy to dissolve this organiFation. A sole trader can do this in

according with his will at any time.

PARTNERSHIP FIRM Partnership Business a form of business organiFation created through voluntary agreements of minimum two and ma)imum &$ persons >the ma)imum is $ in the case of banking business?, with the intention of making and sharing profits among themselves. A partnership can arise only as a result of an agreement or contract, e)pressed or implied, between the partners. In Bangladesh, a partnership firm is to be formed under the provisions of the Partnership Act :#&. By definition, a partnership is illegal if it consists of more than &$ persons in case of a general business and more than $ persons in case of business in banking. A nonprofit making association is not a partnership in law of Bangladesh. In general, institutions or associations cannot be a member of a partnership. 'he Partnership Act :#& does not re1uire a partnership deed or agreement to be registered. 'he registration of such firm is optional. But if registered, a partnership firm can en2oy some legal rights and facilities. A partnership deed includes the name of the firm, nature of business, the capital and property of the firm, the capital of individual partners, term of partnership, provision for salaries, and drawings on account of profit, rate of interest >if any? on partners7 capital, advances and drawings, rights and duties of  individual partners, provision for accounts and audit, division of profits and losses >capital and revenue?, powers of admission and e)pulsion of a partner, termination of  agreement by insolvency, death, etc., valuation of goodwill and share of assets on sale or death, and an arbitration clause. If a partnership business is not registered, a partner of the firm can not bring a suit to enforce a right arising from a contract or conferred by the Partnership Act against the firm or his copartners. Also, an unregistered firm can not file a suit, or take other legal proceedings, to enforce a right from a contract, or to claim a setoff in any suit filed against it. owever, the nonregistration of a firm does not affect the right of an unregistered firm to bring a suit to enforce a right arising otherwise than out of a contract and the power of an official assignee or receiver to realiFe the property of an insolvent partner.

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$eat*res of artnershi &*siness: Contract*al relationshiC 'here are must be contractual relationship between

partners. A partnership contract creates a contractual relationship among partners in partnership business. "l*rality of ersons:  5nlike sole proprietorship in partnership business there must be

more than  person to form the business. According to partnership Act :#& it consists of more than &$ persons in case of a general business and more than $ persons in case of business in banking. E%isting of &*siness:  'he partnership business e)ists according to the specification of 

time or of the completion of specific task written on the contract. After completion of time of task the partnership business will be winding up. haring of rofits: Profits of the partnership business divided among the partners

according to the contract. (*t*al agency:  It is a mutual agency of several partners who form and conduct

business mutually for the purpose of earning profit. Decision making:  0ecisions are made under the ma2ority of partners. Individual can

not make any decision. Efficient administration: ()pertises of different background take part in part in

partnership which make the administration efficient. haring of risk C All partners of partnership firm risk which make it easier to take risk for 

more profit. ack of searate entity:  Gack of separate entity of partnership make all partners liable

all together for any kind of reason. E%ression of secrecyC decision can not be kept secret because all partners take part

in decision making.

Principle Legislation# 

'he Partnership Act, :#&=

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General Re$uire%ents to Start a Partners!ip &usiness# • • •

• • • • •

• •

'he Partnership 0eed= ;inutes of Partners ;eeting= 'rade Gicense from *ity *orporation;unicipality5nion *ouncil >Gocal 4overnment Bodies?= 'a)payers Identification +umber >'I+? JA' Eegistration >in the cases where applicable? IE* >in the case of business related to import? (E* >in the case of business related to e)port? GicensePermission from the authorities according to the nature of  businessprofession Bank Account ;embership of 'rade Body

 As per publication of Board of Investment >B6I?, local investor you may setup a business under several organiFational structures such as single proprietorship, partnership and limited company. In the case of a foreign investor, one may establish its business only under limited company.

Partners!ip 'ee' 'he partnership Act :#& does not re1uire a partnership deed or agreement to be registered. 'he registration of such firm is optional. But if registered, a partnership firm can en2oy some rights and facilities.  A partnership deed include . 'he name of the firm, &. +ature of business, #. 'he capital and property of the firm, -. 'he capital of individual partner, !. 'erm of partnership, . Provision for salaries, and , ". 0rawing on account of profit, 8. Eate of interest >if any? on partner capital, :. Advantages and drawings, rights and duties of individual partners, $.Provisions for accounts and audit, . 0ivision of profits and losses >capital and revenue?, &.Powers of admission and e)pulsion of a partner, #. 'ermination of agreement by insolvency, death, etc., -.Jaluation of goodwill and share of assets on sale or death, and an arbitration clause.

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A'(antages # Partnership organiFation en2oys the following advantagesC . /acility of formationC /ormation of partnership is easy. Because these no such legal formalities for such kind of business. &. Benefits of larger resourcesC 'ogether all partners can bring larger resource for  partnership business. #. /le)ibilityC Partnership business is fle)ible due to less formalities, rules and regulations. -. 0ecisionmakingC 0ecisions are made under the ma2ority of partners. Individual cannot make any decision unless he has support from other partners in ma2ority. !. Benefits of combined abilityC partnership business has the benefit of combined ability, which brings longterm success for the business. . *ollective decisionC decisions are made under the ma2ority of partners. Individual cannot make any decision he has support from other partners in ma2ority. ". Sharing of riskC all partners of partnership firm share risk which make it easier to take risk for more profit. 8. Wholesome effect of unlimited liabilityC Partnership business has a wholesome effect of unlimited liability. :. Protection of minority interestsC Partnership business protects the interest of  minority, which is beneficial for the business. $.Shared responsibilityC All partners of partnership firm share responsibility which makes it easier to establish a successful partnership business.

)isa'(antages # 0espite several advantages, the partnership form of organiFation suffers from the following limitations. . Gack of harmonyC 6ften there is lack of harmony e)ist in partnership business, which is very detrimental for such business. &. Gimited resourcesC 'he amount of resources is limited in partnership business. #. Eestricted enterpriseC Partnership enterprise is restricted due to its nature and available for limited operations. -. InstabilityC It is very easy to dissolve this organiFation. A sole trader can do this in according with his will at any time. !. Gack of proper decision makingC 0ecisions are made under the ma2ority of  partners. Individual cannot make any decision he has support from other partners in ma2ority. . Gack of public confidenceC Partnership business does have such public confidence like public limited company. ". eavy burden through implied authoritiesC Partnership business creates heavy burden through implied authorities. 8. (fficient administrationC ()pertise of different background take part in partnership which makes administration efficient.

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:. Gack of separate entityC Gack of separate entity of partnership make all partners liable all together for any kind of reason. $.Gack of responsibilityC All partners of partnership firm share responsibility, but there is a saying like Ksharing responsibility means no ones responsibilityL.

)issolution o partners!ip *r%# 'he dissolution of partnership between all the partners of a firm is called the 3dissolution of the firm3.

. Dissol*tion &y agreement 

 A firm may be dissolved with the consent of all the partners or in accordance with a contract between the partners

2. Com*lsory dissol*tion

A firm is dissolved a4 by the ad2udication of all the partners or of all the partners but one as insolvent, &4 by the happening of any event which makes it unlawful for the business of the firm to be carried on or for the partners to carry it on in partnershipC Provided that, where more than one separate adventure or undertaking is carried on by the firm, the illegality of one or more shall not of itself cause the dissolution of the firm in respect of its lawful adventures and undertakings 3. Dissol*tion on the haening of certain contingencies

Sub2ect to contract between the partners a firm is dissolved  if constituted for a fi)ed term, by the e)piry of that term. completion thereof.   by the death of partner. !.

Dissol*tion &y notice of artnershi at will 



Where the partnership is at will, the firm may be dissolved by any partner  giving notice in writing to all the other partners of his intention to dissolve the firm. 'he firm is dissolved as from the date mentioned in the notice as the date of  dissolution or, if no date is so mentioned, as from the date of the communication of the notice.

#. Dissol*tion &y the Co*rt.

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 +oin stoc, co%pan- in &angla'es!  A company form of business organiFation is known as a 2oint stock company. It is a voluntary association of persons who generally contribute capital to carry on a particular  type of business. Which is established by law and can be dissolved only by law.

C!aracteristics o .oint stoc, co%pan;ain characteristics of 2oint stock company areC . Gegal formationC A 2oint stock company comes into e)istence only when it has been registered after completion of all formalities re1uired by the Indian company  Act :!. &. Artificial personsC @ust like an individual, who takes birth, grows, enter into relationships and dies, a 2oint stock company takes birth, grows, enters into relationships and dies. #. Separate legal entityC being an artificial person, a 2oint stock company has its own separate e)istence independent of its members. -. *ommon sealC A 2oint stock company has a own seal, which is used while dealing withn others or entering into contracts with outsiders. !. Perpetual e)istenceC A 2oint stock company continues to e)ist as long as it fulfils the re1uirement of law. It is not affected by the death, lunacy, insolvency or  retirement of any of its members. . In a 2oint stock company, the liability of a members is limited to the e)tent of the value of shares held by him. ". 0emocratic managementC 2oint stock companies have democratic management and control.'hat is, even though the shareholders are own of the company, all of  them can not participate in the management of the country. 8. Garge financial resouresC A 2oint stock company is liable to collect a large amount of capital through small contributions form a large number of people. :. *ontribution to societyC A 2oint stock company offers employment to a large number of people. It facilitates promotion of various avcillary industries, 'rade and au)iliaries to trade.

A'(antages o .oint stoc, co%pan-# 'he main advantages of 2oint stock company  Garge financial resourcesC A 2oint stock company is able to collect a large amount of capital through small contributions from a large number of people. & Gimited liabilityC In case of a company, the liability of its members is limited to the e)tent of the value of shares by them. # Professional managementC Board of directors >or simply board? manage the affairs of the company and are accountable to all the members. So members

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!  " 8

: $

elect capable person having sound financial, legal and business knowledge to the board so that they can mange the company efficiency. Gargescale productionC 0ue to the availability of large financial resources and technical e)pertise, it is possible for the companies to have largescale production. *ontribution to societyC A 2oint stock company offers employment to a large number of people. It facilitates promotion of various ancillary industries, trade and au)iliaries to trade. Eesearch and 0evelopmentC 6nly in company form of business it is possible to invest a lot of on research and development for improved process of production, new design, better 1uality products, etc. Artificial personC @ust like an individual, who takes birth, grows, inter into relationships and dies, a 2oint stock companies takes birth, grows, enters into relationships and dies. Separate legal entityC being an artificial person, a 2oint stock company has its own separate e)istence independent of its members. It means that a 2oint stock company can own property, enter into contracts and conduct any lawful business in its own name. *redit facilitiesC @oin stock companies may have credit from banks and different financial institutions. Well publicityC @oin stock has well publicity due to its large e)tension among shareholders as well as in business operations.

)isa'(antages#

LIMITE) COMPANIES Gimited company is a company in which the liability of the members or subscribers of  the company is limited to what they have invested or guaranteed to the company. Gimited companies may be limited by shares or by guarantee. And the former of these, a limited company limited by shares, may be further divided into public companies and private companies. Business in Bangladesh may be carried on by a company formed and incorporated locally or by a company incorporated abroad but registered in Bangladesh. 'he incorporation or registration is done by the Eegistrar of @oint Stock *ompanies and /irms under the provisions of the *ompany7s Act ::-. *ompanies could be classified in following categoriesC . *ompany Gimited by Shares  Public Gimited *ompany and

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Private Gimited *ompany

&. *ompany Gimited by 4uarantees= #. 5nlimited *ompany

Pri(ate Li%ite' Co%pan-#    

Eestricts the rights to transfer the shares= Gimits the number of its members to minimum & and ma)imum !$ e)cluding the persons employed in the company= Prohibits any invitation to the public to subscribe for the shares or debentures of  the company and (ntitles to commence business from the date of its incorporation.

Ma.or pri(ate organiation in &angla'es! . BEA*C Bangladesh Eural 0evelopment *ommittee >BEA*? is non government organiFation. Set up by its founder e)ecutive director /aFle asan Abden. It initially provided relief and habitation assistance to refugee. At present it promotes income generation for the poor, landless through microcredit and programs on health care, literacy, education , trading. &. B4;(AC Bangladesh 4arments ;anufactures and ()porters Association is a recogniFed trade body that represents e)ports oriented garment manufacture. It started in the late :"$. It is dedicated to establishing and promoting contacts with foreign buyers, business and trade association. #. Prime Bank GimitedC It is a private sector commercial bank incorporated in Bangladesh under the companys act ::!-. 'he bank started its operation in "  April ::!. 'he management of the bank vested in a & member board of  directors with the managing director as the chief e)ecutive. It provides Islami banking through two of its branches in 0haka and Sylhet.

Pu"lic Li%ite' Co%pan-# •

•

;ay issue invitation to the members of the public to subscribe the shares and debentures of the company through a prospectus which complies with the re1uirements of the *ompanies7 Act ::-, the Securities and ()change 6rdinance, :: and the Securities and ()change *ommission Act, ::# as amended from time to time. as minimum " members but there is no ma)imum limit.

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• •

as at least # 0irectors. ;ay a private company converted into a public company.

Ma.or pu"lic organiation in &angla'es! 'here are a good number of public organiFations in Bangladesh. Some of them are . WASAC Water 9 Sewerage 0haka popularly known as WASA is responsible for  water supply and sewerage network in 0haka city.  (stablished in :#.  ;anaged by a board headed by a chairman. &. 0(SAC 0haka (lectricity Supply Authority known as 0(SA. It has total manpower  of !$$. It operates in two Fones under general manager.  (stablished on  6ctober, ::.  ;ain ob2ectives are to improved service of electricity to the consumer, improved transmission and to reduce the system loss #. PetrobanglaC successor of Bangladesh ;ineral oil and 4as *orporation>B64;*? which is created through the presidential order number &" on & ;arch :"&. It is worked with oil, gas, mineral by the ordinance of government number & of   April :8! and the organiFation was short name as Petrobangla. -. BE'*C Bangladesh Eoad 'ransport *orporation >BE'*? is the state owns transport corporation of Bangladesh. It was established under the 4ovt. ordinance +o. " of : dated /ebruary :.

0nli%ite' Co%pan-#  An unlimited company refers to a company having no limit on the liability of its members. Principal Legislation   

'he *ompanies Act,::-= 'he Securities and ()change 6rdinance, ::= 'he /oreign ()change Eegulation Act, :-"=

TR0STS  A K'rustL is an obligation anne)ed to the ownership of property, and arising out of a confidence reposed in and accepted by the owner, or declared and accepted by him, for  the benefit of another, or of another and the owner 'he person who reposes or declares the confidence is called the KAuthor of the 'rustL. 'he person who accepts the confidence is called the K'rusteeL. 'he person for whose benefit the confidence is

23

accepted is called the KBeneficiaryL. 'he sub2ectmatter of the trust is called K'rust propertyL or K'rustmoneyL. 'he KBeneficial interestL or KInterestL of the beneficiary is his right against the trustee as owner of the trustproperty= and the instrument, if any, by which the trust is declared is called the Kinstrument of trustL.  A breach of any duty imposed on a trustee, as such, by any law for the time being in force, is called a KBreach of trustL  And in the 'rust Act, 88&, unless there be something repugnant in the sub2ect or  conte)t, KEegisteredL means registered under the law for the registration of documents for the time being in force. 'he main instrument of any public charitable trust is the trust deed, wherein the aims and ob2ects and mode of management >of the trust? should be enshrined. 'he salient features of 'rust are as followsC   In every trust deed, the minimum and ma)imum number of trustees has to be specified. •

 'he trust deed should clearly spell out the aims and ob2ects of the trust, how the trust should be managed, how other trustees may be appointed or removed, etc. •

 'he trust deed should be signed by both the settlors and trustees in the presence of  two witnesses. •

 'he trust deed should be e)ecuted on non2udicial stamp paper, the value of which would depend on the valuation of the trust property. •

Principal Legislation    

'he 'rust Act, 88&= 'he Societies Eegistration Act, 8$= 'he *ompanies Act, ::-= 'he Eegistration Act, :$8=

5eneral Re6*irements to et / a Tr*st:

'he application for registration should be made to the official having 2urisdiction over  the region in which the trust is sought to be registered. •

 After providing details >in the form? regarding designation by which the public trust shall be known, names of trustees, mode of succession, etc., the applicant has to affi) a court fee stamp of specified amount, depending on the value of the trust property. •

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 'he application form should be signed by the applicant before the regional officer or  superintendent of the regional office of the charity commissioner or a notary. 'he application form should be submitted, together with a copy of the trust deed. •

 'wo other documents which should be submitted at the time of making an application for registration are affidavit and consent letter. •

 +OINT 1ENT0RES @oint venture >@J? is a business agreement in which parties agrees to develop, for a finite time, a new entity and new assets by contributing e1uity. 'hey e)ercise control over the enterprise and conse1uently share revenues, e)penses and assets. 'here are other types of companies such as @J limited by guarantee, 2oint ventures limited by guarantee with partners holding shares. Principal Gegislation              

'he *ompanies Act, ::-= 'he Investment Board Act, :8:= 'he /oreign Investment Promotion and Protection Act, :8$4eneral Ee1uirements to Set 5p a @oint JentureC @oint venture agreement  Application /orm 'rade Gicense Gimited *ompany C *ertificate of Incorporation ;emorandum and Articles of Association +ame and address of other shareholderdirector>s? of the pro2ect  Additional documents for pro2ects in certain sectors *opy of rental agreement or lease deed for premises or land purchase document 'I+ *ertificate Eegistration /ee >Bank 0raft?

S'(PS '6 S'AE' A @6I+' J(+'5E( I+ BA+4GA0(S      

@oint Jenture Agreement between the parties *ompany /ormation or (stablishing Place of Business 6pening GiaisonBranchEepresentative 6ffice= Securing 'rade Gicense= Plant Setup= Eegistering with B6I= @oint Jenture and $$% /oreign Investment proposal in the Private Sector=

25          

Selffinanced local investment proposals including industries sanctionedfinanced by financial institutions or commercial banks= Permission for setting up 2oint venture industrial units with public sector  corporations= 6btaining Industrial Plot= EegistrationApproval for /oreign Goan, Suppliers *redit, PAM( Scheme etc.= 6btaining 5tility *onnection Import of Spare Parts and Eaw 9 Packaging ;aterials= 6btaining Work Permit= Eegistration with /actories Act= Eegistration with (nvironmental Gegislation= Eemittance of Eoyalty, 'echnical Hnowow and 'echnical Assistance /ees= *ommercial 6peration

CO2OPERATI1ES *ooperative is a business organiFation owned and operated by a group of individuals for their mutual benefit. A cooperative can also be defined as 3an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through 2ointly owned and democratically controlled enterprise3. A cooperative may also be defined as a business owned and controlled e1ually by the people who use its services or by the people who work there. Jarious aspects regarding cooperative enterprise are the focus of study in the field of  cooperative economics. 'o uplift the status of the poor people living in the rural areas, the government of  Bangladesh set up the Eural 0evelopment and *ooperative 0ivision > E0*0 ? under  the ;inistry of Gocal 4overnment, Eural 0evelopment and *ooperatives. 'his 0ivision is responsible for policy formulation, planning, monitoring and administration of rural development and cooperative initiatives of the country. E0*0 is also assigned to coordinate the activities pertaining to rural development undertaken by other ;inistries and provide policy guidelines to the E0A and BAE0 are serving the policy guidelines and formulating recommendations related to poverty reduction strategies through their  symbiotic research and actionresearch programs.

Principal Gegislation   

'he *ooperative Societies Act, &$$= 'he *ooperative Societies Eules, &$$- 4eneral Ee1uirements to Set 5p a SocietyC Byelaws and 0eed of *ooperative Society

26   

 Application in the prescribed form to the Eegistrar of *ooperative Societies 'he registration of a cooperative society is sub2ect to satisfaction of the Eegistrar  of the *ooperative Societies >E*S?= /or banking and unlimited liability cooperatives some financial conditions have been

Ot+e) "o) o" #$%ne%%e%, T*rnkey 7*siness in 7angladesh

 A turnkey business is a business that includes everything you need to start running the business. A business that is being sold as a turnkey is business would include tangibles such as inventory and e1uipment through intangibles such as previously established reputation and goodwill. 'he most common type of turnkey being sold is a franchise.  A turnkey business could involve the following elementsC      

Pro2ect administration Gicensing in of process 0esign and engineering services Sub contracting ;anagement control ;aterials control.

$ranchise 7*siness $irms in 7angladesh $ranchise:  A franchise is a right granted to an individual or group to market a

companys goods or services within a certain territory or location. $ranchise and $ranchisor: An individual who purchases and runs a franchise is called

a Kfranchisee.L 'he franchise purchases a franchise from the Kfranchisor.L 'he franchisee must follow certain rules and regulations already established by the franchisor. In recent years franchising has also been heavily promoted in Bangladesh. E%amles of franchises in 7angladesh 8$C 9H/*, founded and also known as Hentucky /ried *hicken. It is a chain of fast

food restaurants based in Gouisville, Hentucky, in the 5nited States. H/* has been a brand and operating segment, termed a concept of MumN Brands since ::" when that company was spun off from Pepsi*o as 'ricon 4lobal Eestaurants Inc. H/* primarily sells chicken pieces, wraps, salads and sandwiches.

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'ranscom /ood Gimited, a concern of 'ranscom 4roup is the franchisee of H/* in Bangladesh. 'he first ever H/* restaurant has been opened in September at 4ulshan, 0haka with a seating capacity of "8 persons. In the coming days, H/* plans roll out more restaurants in Bangladesh. H/* also has branches in 0hanmondi and ;irpur. "i00a *t; piFFa ut is an American restaurant chain and international franchise of 

PiFFa ut in Bangladesh. With a seating capacity of &&$ persons, the first outlet of  PiFFa ut opened in South Avenue, 4ulshan at  th 0ecember. *urrently there are three outlets, two in 0haka which are situated at 4ulshan and 0hanmondi other at *hittagong. $oreign Comanies in 7angladesh

/oreign company is a corporation which was incorporated under the laws of a foreign country. It is also called Alien *orporation. E%amles of foreign &*siness in 7angladesh

i

A)iata 4roup Berhad is the emerging leader in Asian mobile telecommunications. 'he group one of the largest telecommunications companies in the region, has e)tensive operations and business in $ countries in Asia, providing a comprehensive range of mobile telecommunication services to a combined base of over :- million subscribers. 'he group currently has controlling interest in its mobile communications operations in ;alaysia, Indonesia, Sri Ganka, Bangladesh etc. Its mobile subsidiaries operate under the brand names K*elcomL in ;alaysia, KOGL in Indonesia, K0ialogL in Sri Ganka, KAH'(GL in Bangladesh. Eobi A)iata GimitedAH'(G is a 2oint venture between A)iata 4roup Berhad ;alaysia>"$%? and +'' 0oco ;6 Inc, @apan>#$%?. Eobi is the third largest mobile phone operator in Bangladesh in terms of  subscribers.

ii

B(OI;*6 4roup is the largest private sector industrial conglomerate in Bangladesh. B(OI;*6 comprises of five publicly listed companies and si)teen private companies. B(OI;*6 industrial business include 2ute, te)tiles, basic chemicals, pharmaceuticals, and ceramics. B(OI;*6s nonindustrial undertakings are focused on real estate and construction, engineering, media, information technology, trading and financial services.

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(*ltinational Comanies in 7angladesh

 A multinational company is a corporation or a enterprise that manages production or  delivers services in more than one country. It can also be referred to as an international corporation. 'he International Gabor 6rganiFation >IG6? has defined an ;+* as a corporation that has its management head1uarters in one country, known as the home country, and operates in several others countries known as the host countries. Some multinational corporation are very big, with budgets that e)ceed some nations 40Ps. ;ultinational corporations can have a powerful influence in local economics, and even the world economy and play an important role in international relations and globaliFation. E%amle of (*ltinational Cororation

a 7ritish American To&acco: British American 'obacco Bangladesh is one of the largest multinational in Bangladesh and has been operating for over $$ years. 7ritish American To&acco &rands the following;

 & # !

Benson 9 edges @ohn Player 4old Geaf  Pall ;all Star Scissors Pilot and Bristol

b4Rangs 5ro*C Eangs 4roup of *ompanies >E4*? is one of the most reputed and largest groups in Bangladesh. 'he 4roup has always been known as a pioneer in the field of consumer technology in Bangladesh. 'he company was registered under the *ompanies act of :# and was incorporated in Bangladesh on &: th ;arch, :8-. In course of time the company has spread its branches in various field of business and achieved remarkable success. At present there are si)teen sister concerns and each of  them is a complete 0ivision with individual strategy 9 policy and employees. Eangs has achieved the name of the consumer. *ustomer satisfaction is the prime focus of all 0ivisions.

)o#le% o" #$%ne%% o)!anaton n Ban!la*e%+, In our country, each and every Business organiFations faces with some problem. Some o f them are described bellow

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1

Corr*tion C t is the most common problems of our organiFation. ;ostly public

organiFation face this problem. *orruption includes here 0ishonesty, taking bribes, working for self interest etc. 2

olitical infl*ence C very often ,business organiFation of Bangladesh are badly

influenced by the parties. Political unrest also creates problems to thee org 3

/nfavora&le working conditions C In many organiFations proper working

environment is absent. In these situation the employees fail to perform their  duties 9 responsibilities. 'hus, unfavorable working condition creates problems in the organiFation. !

ack of democratic environment : ;ost f the organiFation of Bangladesh lacks

democratic environment. 'he employees cant take part in the decision making process. As a result, they neglect in perform their task. #

training is the means increasing the ability of the employees to perform their 2obs properly and lack of this training creates many problems in the business org.

'

Emergence of large n*m&er of trade *nion :  in the public organiFation e)ists

ack of ade6*ate training facilities :

too many trade unions. It creates heavy problem to the management of the organiFation. )

ack of roer discilinary action : discipline is a must to be successful in

business. Jery often we notice that, our business organiFation lacks proper  disciplinary action. 'hat !s why those organiFation fail to succeed. +

ack of roer lanning : In some business organiFation of Bangladesh, proper 

planning is absent. As a result the organiFation fails to achieve its goals. ,

ack of motivation : ;otivation increasing the productivity. But many business

organiFation of Bangladesh lacks motivational programs. ack of favora&le emloyer;emloyee relationshi :  In many organiFation of our 

country good employer relationship is absent. As a result the employee dont feel interest in performing their task. 'he common problems of business org. described above Ethical deterioration of &*siness eole

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(thics are the issues that should be strictly maintained in the business org. although it is very important, ethical deterioration are also noticed in the peoples behavior. Some unethical practice of business people are described below  1 Dishonesty : 0ishonesty is very common in our business organiFation. It

includes those activities that goes against the organiFation. /or e)C taking bribes. 2 Distortion of the fact: It occurs when the business people misrepresent any

information or facts. 'hese type of unethical practices mislead the other people. Jery often business people think only about their interest. In order to fullfill those interest they even work against the interest of org.

3 Tendency of f*lfilling self interest :

! 5reed to amass e%cessive rofit :   In order to make e)cessive profit the

business owner work against the interest of the customer. /or e)C mi)ing water  with milk, mi)ing worst 1uality goods with better 1uality. # Creation of false doc*ment C 'his in also common unethical practice.

Sometimes our business people show high or low profit from the actual profit in order to deceive people . ' ack of transarency : lack of transparency is also seen in business org. It

occurs when the documents of the org. are intentionally kept unclear. Eesistance to investigation is also included here . ) Avoiding comensation for *nlawf*l Act : very often the business people do

unlawful act but they dont pay any compensation for these acts. 'hese types of  practices harm for the whole society. + nvasion of rivacy : sometimes the business people disclose the privacy of 

the organiFation for the achievement of personal gain. ;any business organiFation pollute the environment by the fumes and leaving the wastes here and there. 'his is also an unethical practice .

, "oll*ting the environment :

1- "lanned o&solescence : It means the deliberate creation of a product or 

service with a limited useful life. The ethical deterioration of &*siness eole are too many to descri&e.  'he

most common of them are described above.

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Reco%%en'ation 'he following guidelines can be followed by the business organiFation of Bangladesh  ;aintaining proper relationshipC It is an important measure to reduce the problem of the org. proper employeremployee relationship ensures productivity organiFation development, achievement of goal etc. & Providing educate trainingC 'he employee should be provided ade1uate training in order to perform their 2ob properly. # (nsuring favorable working conditionC /avorable working condition should be ensured, so that the employees can perform their assigned task properly. - Ade1uate motivational programsC Business organiFation should arrange ade1uate motivational program for the employees. If it is ensured, the employees will be more interested in performing their 2obs. ! (stablishing rules and regulationC A business organiFation should establish necessary rules for managing the total systems of the organiFation. ;oreover, it should also ensure the proper application of this rules.  (nsuring democratic environmentC /ree and democratic environment is very important for the business organiFation. So, each and every organiFation should ensure democratic environment. " (valuating the employees performanceC After a certain time period every business organiFation should evaluate the performance of the employees. 'his will increase the productivity in the organiFation. 8 ;anaging health and safety in the organiFationC the business organiFation manages health and safety measure properly. 'his will reduce the probability of  dispute in the organiFation. : (nsuring proper disciplinary actionC 0iscipline should be strictly maintained. And if there is any unethical behavior or dishonesty, punishment should be given to respected employee. $ ;aking proper planC Business organiFation should make proper plane for the organiFation. ;oreover, proper implementation of the plan should be ensured.

ow the ethical deterioration of &*siness eole can &e solved

 Strengthening the ethical frameworkC 'he ethical framework of the people should be made more strong. (very business people should be made aware of the harmful effects of the unethical practices. & 'raining ethicsC 'he business organiFation can arrange training programs on ethics for the business people . # (mploy motivationC 'he business organiFation should arrange motivational programs for the people. And if the employees are motivated they will sacrifice their interest for the interest of the organiFation.