Twelve Questions regarding the YCP Company Research Paper

Twelve Questions regarding the YCP Company - Research Paper Example 2. What impression have you found of Corporate Governance of YCP Company? Corporate Governance plays the role of sight and foresight for an organization. Particularly, in the case of YCP Company the structure possessed some basic flaws in the distribution of duties and power according to the Code of Corporate Governance. The most obvious a blunder is allocation of 60% of voting equity to Kong and Watson. Furthermore, according to the detail illustrated the absence of remuneration committee and nomination committee followed by the weak structure of Board were some of the fundamental errors of the structure of Corporate Governance. 3. What is your opinion of the ownership structure in YCP, in the light of the fact co administrators Kong and Watson retain 60% of the voting equity. Can group of small shareholders make a significant contribution to the governance of the company? What about large share holders. A diverse and balanced ownership structure is the key to keep transparency and authenticity breathing in organizational management. However, the very aspect was absent in case of YCP, the imbalance of major share owner ship and voting rights is evident error. In addition, the fact that minor share holder’s were totally neglected and the other share holders with major contribution had other businesses to look after and their presence in the administration was a mere formality. The dire need of YCP that is obvious in the structure of YCP was that of rationally designed attribution of power and authority along with voting rights based on the fact that when the voting rights of controlling shareholders exceed the cash-flow rights, the incentives for asset diversion are magnified. 4. What is your opinion of the structure of the board have had before approving the construction of the private telephone network for YCP right after the company went public The expansion planned in the very short period after establishment should been backed with strong supporting strategies. In the case of YCP the segregation of management and supervision was the seemingly lacking feature. Hence, after the registration company into the stock exchange a strong structure of Corporate Governance was the essential need of time. Furthermore, evident is the fact from the description that investment in construction was an element of the chairman’s show off rather than strategical opportunity. Therefore, the strategy of expansion on the grounds of serving ego without any exit was more an evidence of Board structure rather than mismanagement. 5. What information should the board have had before approving the construction of the private telephone network for YCP. The feasibility and relevance to the vision of the company was the main area to be focused by board in the evaluation of proposal of construction. Furthermore, funding requirements, timeline, return on investment rate, cost benefit analysis, alternative plans, competitors analysis , PESTEL analysis an d an exit plan were the mandatory analysis to be investigated by the board. Hence, the most important feature to be considered was the exploration of the potential of company to support such a gigantic project along with usual business in terms of time, efforts and resources.

Funding a restuarant Essay Example | Topics and Well Written Essays - 750 words

Funding a restuarant - Essay Example It is not a great idea to live without emergency money that is to help when things start going south. Banks tend not to support and savvy investors may also forsake the business owner unless they see him/her taking most of the risk. Risks tend to be like a barrier to stop people who are not sure of the way forward from committing an offense though, those ready to risk tend to attain their goals. One of the reasonable ways to have a source of income is by looking for external investors. This includes partners, friends and family, individuals searching for an investment, or the entire above combination. It is very good to make sure that every partner that is brought in your table are those that bring with them something that the group is missing. This is so since not every new partner comes because he/she has money that the business may need, some come because of their abilities and services that they will render to the company. This may include: amazing bookkeeping abilities, culinary prowess, a considerable amount of experience, marketing skills, host experience, efficiency expertise, knowledge of local dining, and operations skills (Fields, 2007). Bringing name recognition; it is not necessary for a partner to come with money or some skills or qualities. It can be a plausible reason to have a partner on board because of his popularity. This may include a popular or celebrity chef who is to show you how to perform behind the house activities or even attract customers because of his popularity and quality of service. Too many chefs spoil the soup. It is common knowledge that the more partners one has, the harder to align them. One should deal with decision-making controversies before he/she seeks for sources of financing, opening the restaurant’s doors or talking of the business plans. If the partners cannot come to an agreement at this, there are fair chances that any agreement will be reached and probably should not pursue the business together. If