Finance is something that deals with money management. I regard it as an important business entity. Only by the study of finance, we can fix the assets and the liabilities. These days the study of management is becoming an important part of the study because it helps the future entrepreneurs to think about the best ideas they can design to earn their profits, not only to enjoy them alone rather increase the economic condition of the nation. So, let me highlight some of the aspects of Business and the Finance.
LIMITATIONS TO A COMPANY
There are always some limitations to a company with respect to some or the other category. If there were no limitations, this would give rise to monopoly. Limitations on the other hand also guarantee some kind of protection to the company. Based on the limitations, business companies can be categorized as-
- A company with limited liabilities– these type of companies focus on the protection of their shareholders and owners from facing any failure in business under certain legal protection acts. It is often studied that unincorporated business is usually not protected and always on the verge of facing some risks.
- Aguarantee limited company– these include companies that focus on serving in any particular commercial Even if the company becomes insolvent, they will not prefer to have some economic rights.
- A company which is limited by shares– this is a very common one. These types of companies the liability of a shareholder are limited to some extent.
- A company that is unlimited– this limitation can be put to it on the basis of a share capital. In this case, the liabilities of the company are not limited to a very large extent.
RELATION OF FINANCE AND CAPITAL WITH BUSINESS
There are various classifications of business. These include agriculture, financial services, entertainment companies, industrial manufacturers who aim to produce all the needs of the customers, transportation which is a major form of earning credits. For running all the above classifications of business, there comes a need to know about the manufacturer. Manufacturing refers to the production of articles for use for sale. This can be of any type, beginning from small objects too large heavy industry needs &machinery.
These goods when are on the verge to be launched in the market, they need publicity. This brings the need of the advertising companies, fixing of the prices. This also needs to undergo Research and Development plans, which is the first stage of development.
Every business organization works their best to make their product the best. This is hence an intellectual property. In order to protect this property, this gives rise to issue patents, trademarks as well as copyrights. Doesn’t that really sound good? So, the tiresome efforts must always have an option for their protection. When everything is so much chained, the work becomes easy. Let us join hands to progress the economic standard of our nation to such a great extent, that we shall never have to face some crisis.