UMS Company’s Growth and Business Form

Subject: Company Information
Pages: 2
Words: 538
Reading time:
2 min

The growth of UMS Company from a small pharmacy to a large multinational company is an indicator of the many advantages that are associated with a joint-stock of operating a business as compared to a sole proprietorship. The joint-stock mode of operating a business ensures faster growth rates on both the capital and the sales made. A joint stock facilitates the realization of capital through the issuance of shares to the public. The huge resources from the shares are used to facilitate the growth of the business by catering to the financial requirements.

UMS’s transition to a multinational company can be attributed to the high capital invested by the shareholders and the well-strategized management techniques laid down. In a joint stock, there is a limited liability to the individual shareholders because the business is held liable for any debt incurred. This legal element encourages investors to buy shares in the company of their choice, hence, paving way for increased capital in circulation. The capital raised is used to propel the business to set objectives and plans forward. From a joint stock, a company is stable and exists without interruptions of natural calamities such as the death and insolvency of the individual shareholders. In addition, the changeover in management does not affect the smooth running of the business.

This aspect assures an unending process of growth to the company. The success of growth in an organization results from effective management that is implemented by the management team in place. The hired professionals are skilled in matters relating to finances, human resources, and other areas critical to the proper organization of the firm. A joint stock offers a scope for the business expansion in financially strategized procedures geared to realizing new projects. The finances are obtained from debentures and shares issued to the public.

The managerial skills and capabilities help any company in planning the growth of the company along its life cycle. In this regard, a joint-stock creates an environment of large-scale production in buying, selling, and production of goods and services. These economies of scale facilitate the production of goods at a relatively lower cost which also translates to customer supplies at reduced prices. UMS Company benefits from paying income tax at a constant flat rate. In this case, the tax exemptions and deductions enable manufacturing companies to wisely invest their financial resources in other growth ventures, in perfecting their products and services and developing further innovations in the company’s field of specialization.

In addition, a joint-stock mode of operating business creates employment for the members of the society, offers investment opportunities, and supplies quality products at relatively cheaper prices. A company is able to associate well with the citizens of the country it is carrying out its activities by facilitating charity projects, developmental programs, and creating public confidence that helps to build trust between it and the customers. UMS Company success tips are associated with the joint-stock program in India that led to the increased growth rates of the facilities of production, hiring of skilled management and other personnel, infrastructure development, and the investment of advanced technology mode of production.