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FLEX FUEL

Flex Fuel is a company which will provide Flexible Fuel

Technology to car manufacturers so that the cars can run
on gasoline or a blend of up to 85% of ethanol. Except for
a few engine and fuel system modifications, they are
identical to gasoline-only models. FFVs experience no loss
in performance when operating on E85 (ethanol).

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Form of business organisation
Flex Fuel will be a public limited
company as it is suitable for large
organisations. The advantages
being of having higher permanent
capital and the company will be a
different identity from the owners
which proves the company will
have limited liability.

There will be no restrictions on buying, selling and

transferring of shares. Usually public limited companies
have high reputation which will provide easy access to
customers and suppliers. However, the legal formalities
of forming such a company are quite complicated and
this company might become difficult to control.

Factors Of Production

LAND: The factory will be set up in the

industrial area of Chennai as major car
manufacturing companies have their
production units there.

LABOUR: Major part of the employees

will include technologists, mechanics
and labourers.

CAPITAL: We will be importing parts of

the new type of engines from Brazil. We
will require assembling machines here.

ENTERPRISE: We the four owners will be

the entrepreneurs.

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Ownersprofits
return on
capital

WorkersJob
security

CustomersGood
quality of
products

BUSINESS STAKEHOLDERS

Community
- Clean
environme
nt and jobs

Governmen
t- Taxes
and
subsidies

InvestorsDividends

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Sector Of Industry
Flex Fuel Public Limited
will be in the secondary
sector of the industry.
This sector generally
takes the output of
theprimary sectorand
manufactures finished
goods. These products
are then either exported
or sold to domestic
consumers and to
places where they are
suitable for use by other
businesses.

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Business Growth
In the coming future we will
plan to go for a
conglomerate integration
by taking over a ethanol
harvesting plant. This will
reduce our risks as we
would have companies in
different industries. There
might be transfer of ideas
between the different
sections of the business
even though they operate
in different industries.

Capital- the
money
which the
owners
will invest

Bank Loans
-payable
over fixed
period of
time with
interest

Trade
creditsdelay the
payment to
the
supplier

SOURCES OF FINANCE

Issue of
shareprovide with
permanent
capital

Grants and
subsidiesprovided
by the
governmen
t

Bank
Overdraftwithdraw
more money
than we
have in bank

Shashank

Viraj

Ankit

Abhishek

Anmol