Question

How would you define a substantial interest in the workings of the firm?

Answer 1

The substantial interest is the defined as the interest of a person in the organisation which is not a remote interest or nominal interest but it affect the ownership or proprietary in the organisation.

Substantial interest in the working of the firms are as follows :-

1. The substantial interest in the firms means the ownership that has capacity of taking decisions .

2. The capacity to implement a new procedures in the bussines cycle

3. The substantial interest in the firms give a dominating ownership compared to other people Olin the organisation.

4. The person having substantial interest will get high returns or losses from the organisation compared to others.

5. The interest has the position to take key decisions for th bussines.

6. The person having substantial interest will be theain person for the firm i.e in signing on behalf of firm and taking responsibility of work.

7. The person having the substantial interest in organization that person has to invest more financial funds compared to other having less interest.

These are some of the ways that to explain the substantial interest in the firms.

I hope, all the above mentioned points and explanations are useful and helpful to you.

Thank you.