A business is simply defined as a legally registered company or person acting on behalf of others to carry out commercial, industrial, or other productive activities. Companies can either be publicly held for profit entities or non-profitable ones that work to meet a specific social cause or further a particular social cause. In addition to being the owner of the business, a person also acts as the company’s director and manager. In either capacity, the person is considered the owner of the business. However, not everyone has the ability to run a business, especially if they do not have prior experience in finance, accounting, marketing, sales, or other business-related tasks.
Business corporations are organizations that have separate shares of stock ownership. The corporation does not itself make any money off of the shares it issues. Instead, the profits are passed down from the directors (who are also stockholders) of the corporation to the shareholders who choose to sell their shares for a predetermined amount of time at a preset date. This means that for the duration of the lifespan of the corporation, all profits are generated by the shareholder, which provides an incredible level of liquidity when it comes to financing major business ventures.
The main article on commercial law that we will discuss in this article briefly discusses the process of incorporation. To gain full legal rights to your corporation, you must incorporate your business. You must also prepare all of the necessary paperwork and hire an accountant to help you oversee the business. Business corporations are known by various names throughout the world, depending on the local laws. In Canada, they are called partnership corporations, while New Zealand refers to them as company shares. Regardless of the name, they all are considered to be the same type of entity.