BUSINESSES It is known that commercial life is full of risk. Co-operation of
people or small businesses constitutes big companies and businesses. Owning a
business has lots of advantages and disadvantages. We can classify businesses in
five basic categories. First of all, the easiest way to set up a business is
sole trading. Everyone can start sole trading easily because it requires not so
much investment and procedures. Stationers, grocers, bakers etc... can be good
examples for sole trading. The owner of the business takes all profits and just
responsible for his own business. He doesn’t have to employ so many people, and
it is easy to direct the company. If the company goes debt, he will be
responsible for the debts and will be forced to pay them. Secondly, another and
safer kind of business is partnerships. Partnerships require at least two
people. A partnership is the division of responsibilities and cumulating of
different skills. All partners invest money to establish company. Although money
is power, capital is limited by investments of the partners.
They share profits
according to their percentage. If Company goes debt, all partners are
responsible for them. Dramatically conflicts may occur between partners.
Sometimes it results in ruin. The third kind of business is privet limited
companies, which are owned by shareholders. Specific administrative procedures
must be followed in order to establish such companies. It is more complicated
and expensive to set up. Although all shareholders invest money, their capital
is still limited but more than others. More people mean more skills and less
responsibility. If the company goes debt, shareholders pay maximum they had
invested. They do not lose their houses, cars, or planes, etc. They just lose
their investment. That is the fact that, private limited companies have limited
liability. Their accounts are open to the scrutiny by public. A private limited
company takes Ltd. After its’ name. For instance, yüksel ins. Ltd., Baytur Ltd.
etc... Fourthly, public limited companies (plc) are also owned by shareholders.
Public limited companies are more complicated and expensive to set up. Companies
can increase their capital by selling shares. These shares are bought in stock
markets; anybody can buy them easily. Sabancý, Ýþ bankasý, petkim are specific
examples for public limited companies. Their accounts are open to the scrutiny
by public. Finally, another big and strong kind is public companies. The
government fully or jointly owns public companies. They have limited liabilities
and are open to the scrutiny by public. A government can sell apart of the
shares to increase capital. For instance, Turk Tekecom, TCDD (railways), Tekel
are owned by government. In conclusion, there are five kinds of business from
the smallest to the biggest. All of them have advantages and disadvantages. They
bring money with risk. It is possible to earn lots of money in business area.
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