Deal With Credit Issues

Stagnation vs. Dynamism. Stagnation occurs when there is no infusion of new energy into the organization or relationship. In a closed organization with no partnerships (past orientation), change is undesirable and suppressed. Dynamism results from the infusion of new energy and ideas (future orientation), and it is essential if a business is to successfully change with the demands of its customers and markets. How stagnant or dynamic is your organization’s culture?

Alienation vs. Collaboration. Organizations that isolate themselves cannot form partnerships with others. There is a lack of trust toward people both inside and outside the organization, which results in alienation (past orientation). Collaboration (future orientation), on the other hand, involves the give and take of information and a degree of self-disclosure, which results in building trust between people. How would you rate your organization on the alienation–collaboration scale?

Income and corporation taxes are levied on income or profit. In the disposal of a business, proceeds from the sale of trading assets such as stock are included in the trading income of the business for the year in which they are sold and corporation tax might be payable on any profit resulting from the sale.

Income tax could apply to a business vendor in many other areas too numerous to mention in a book such as this. You should, as a part of your exit planning, review with your advisors the likely impact the sale of your business will have on your personal income tax, particularly with regard to the proposed timing of the sale. Early advice will give you the time to plan for the optimum outcomes. Also, it is difficult, and often illegal, to backtrack on transactions after they have been processed, so it is necessary to get it right the first time.

The economic influences on pricing include monopoly and the extent of competition. Antitrust legislation aims to stop abuses of market power by big companies and to prevent mergers or acquisitions that would create a monopoly. Supply and demand affect pricing, because generally when supply exceeds demand prices will fall. The converse is also true: when demand exceeds supply prices will rise. One sales technique is often to stimulate demand by creating a perception of scarcity. Linked to this concept is price elasticity of demand, which highlights how the volume of demand is influenced by changes in price.