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Vanaja and vasula are twin sisters who hail from the state of Kerala. They observed that children from her village were suffering from deformities due to prolonged use of pesticide contaminated river water and endosulphine spayed fruits and vegetables. Taking this into cognizance they both plan to start a firm which would promote organic farming in their village. In the beginning, the firm would be an association of two persons who would carry on the business as co-owners, would share profits and losses and would have unlimited liability. In order to avoid conflicts in future they would have a written agreement which will include all the classes relating to authority and responsibility of members, voting rights and roles and payment of members. The sisters will act as principal and agent for each other and for the firm. They discussed this proposal with the Block Development Officer (BDO). He was very appreciative of their efforts and suggested them to use a catchy slogan which would act as a powerful message to communicate to their cause. Taking clue from the suggestions made by the BDO, the sisters prepared a document which encompassed the relevant external and internal elements involved in starting a new venture. They approached BHIMA capitals Ltd with their proposal and presented a three-minute executive summary to awaken interest of potential funders. Quite impressed with the idea, the professional investors agreed to provide Private equity seed capital in return for minority shareholding.
Read the case study and answer the following questions.
Vanaja and vasula are twin sisters who hail from the state of Kerala. They observed that children from her village were suffering from deformities due to prolonged use of pesticide contaminated river water and endosulphine spayed fruits and vegetables. Taking this into cognizance they both plan to start a firm which would promote organic farming in their village. In the beginning, the firm would be an association of two persons who would carry on the business as co-owners, would share profits and losses and would have unlimited liability. In order to avoid conflicts in future they would have a written agreement which will include all the classes relating to authority and responsibility of members, voting rights and roles and payment of members. The sisters will act as principal and agent for each other and for the firm. They discussed this proposal with the Block Development Officer (BDO). He was very appreciative of their efforts and suggested them to use a catchy slogan which would act as a powerful message to communicate to their cause. Taking clue from the suggestions made by the BDO, the sisters prepared a document which encompassed the relevant external and internal elements involved in starting a new venture. They approached BHIMA capitals Ltd with their proposal and presented a three-minute executive summary to awaken interest of potential funders. Quite impressed with the idea, the professional investors agreed to provide Private equity seed capital in return for minority shareholding.
Read the case study and answer the following questions.