Thursday, April 28, 2011

Advantages of converting Partnership into a Private Limited Company

In a partnership, the partners have unlimited liability for debts. In a private limited company, the liability of the members (shareholders) is limited to the amount they have paid for their shares. If the company is liquidated, the members cannot be asked to contribute any more money to the company. It is the liability of the members which is limited, not the liability of the company. Also, there may be tax advantages in converting - the profits of a partnership are taxed on the profits taken out by the partners. They are taxed as individuals. A company pays corporation tax and dividends may be a tax efficient way of distributing profits. A limited company may also be a better way of conducting business if the owners want to incentivise employees - employees can be given shares (there are tax beneficial ways of achieving this). This is easy to achieve with a company but tricky/ impractical in a partnership. A limited company structure also allows an easier 'exit' route - shares can be sold to new owners quite easily. In terms of management, it can be easier to manage a company. A partnership can often be difficult to manage - everyone can want a say.
Other advantages of private limited company include:
a) Shareholders have limited liability. As a result more people are prepared to risk their money, than partnership.
b) More capital can be raised as there is no limit on the number of shareholders.
c) Control of the company cannot be lost to outsiders. Shares can only be sold to new members if all shareholders agree.
d) The business will continue even if one of the owners dies. In this case, shares will be transferred to another owner

TOK: GREAT GREEK PHILOSOPHERS

Socrates’ philosophy

Socrates was a classical Greek philosopher and he was known for laying the foundation for modern Western philosophy. Socrates’ main mission was to educate the citizens of Athens.

Socrates actually wrote nothing as he felt that knowledge was something to be gained by interacting with the world. Most of our knowledge of his philosophy came from the writings of Plato. Socrates was known for his contribution in teaching concepts. First, Socrates felt that life was not worth living unless you know whom you are, what you believe and what you want to become. Secondly, Socrates felt it was imperative to care for your soul. He thought that intelligence is based on the condition of your soul because it is the basis for your decisions. Lastly, Socrates taught that a truly good person is incapable of being harmed by others.
Socrates taught people that self-understanding was the way to happiness, so he was more of a guide than a teacher. He used the philosophical approach to help people turn inward, and in so doing, to better themselves.
Socrates’ most important idea was what is known as the Socratic Method. It is a form of inquiry and debate between individuals with opposing viewpoints based on asking and answering questions to stimulate critical thinking and to illuminate ideas. There are others institutions now that applies the Socratic method, for instance : law schools, psychotherapy, human resource training and development.
Plato, the Academy and his Works
Not only was he a philosopher, he was Aristotle’s mentor, Socrates’ student and a mathematician. Plato founded the Academy an institution devoted to research in philosophy and the sciences, when he was about 30 years old. It is thought to be the ancestor of modern universities, and was associated with many famous mathematicians, i.e. Eudoxus of Cnidos and Theaetetus. It was also thought to be a school to train young men to become better statesmen. His educational theories include education for all and that education should be provided by the state not by parents. The highest goal of education, Plato believed, is the knowledge of Good; to nurture a man to a better human being.
Central to Plato’s thought is the theory of forms, which implies that the perfect ideals of things in the world are nothing but imperfect copies. The world we perceive is merely a pale shadow of the harsh reality. Plato, arguing for immortality, suggested that we know certain things that we cannot possibly have learned in this life, and hence we must remember things that we knew previously.
During his lifetime, it is recorded that he has written 36 dialogues and 13 letters. One of his most famous piece of work is called ‘The Republic’. It is a dialogue between Socrates and his peers and features then defining justice and describing the just environment and person.


Aristotle
Aristotle was a Greek philosopher who had a towering influence on the advancement of all Western philosophical theories. His contributions included creating a system for deductive logic and writing on physical subjects. As an ingenious writer and polymath, Aristotle thoroughly reconstructed most areas of knowledge he came in contact with.
Aristotle emphasized on good reasoning and believed in the scientific method. This resulted in his developing a formalized system for reasoning. He discovered that the legitimacy of any argument can be deduced by its configuration rather than its content. Aristotle’s syllogism states that given the structure of this argument, as long as the premises are true, then the conclusion will definitely be true.
Working on psychology and the soul, Aristotle individualizes sense perception and reason. This interprets that sense perceptions are the source of all knowledge. His objectives for building the Organon was to establish a universal method of reasoning, making it achievable to learn everything there is to know about reality.
His view on the physical sciences profoundly shaped medieval scholarship and their influence extended to the Renaissance although they were ultimately replaced by Newtonian physics. In the middle ages, Aristotelian metaphysics had a profound influence on philosophical and theological thinking in the Islamic and Jewish traditions, and on Christian thought. All aspects of Aristotle’s philosophy continue to be the object of active academic study today.

Theory of Knowledge[ TOK]

Each student must complete the Theory of Knowledge (TOK) course of approximately 100 hours, which aims to encourage students to be critical thinkers and to teach students basic epistemology
To complete requirements for the TOK, diploma candidates must write a TOK essay of 1200-1600 words on a set title (from a choice of ten issued by the IBO), and present a TOK issue to their class on choice of their topic.
The grades that the student receives from the TOK essay and presentation are compared with the grade for the Extended Essay by way of a matrix designed by the IBO, which may result in the awarding of 'extra' points for the candidate's Diploma. The candidate may get up to three extra points if both works are of a sufficiently good standard. Without the extra points, it is still possible to achieve the Diploma, but not with the full 45 points.

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