SO YOU LIKE TO PUT UP A BUSINESS
the bizz lingo for you)associate capital with money, hard cash. But this is not so, capital can come in the form of assets, tangible and intangible.
Capital in the form of tangible of assets may be in the form of building, home, cars or land that are invested in business. Investment means the ownership is being relinquished to the partnership or corporation. For sole proprietorship, these tangible assets should be solely used for business.
Even intangible assets can be used to start a business. If you have copyright to a book, song or literary manuscripts, an agreement with some financiers can become a step toward a lucrative publishing business.
For people who have the know-how, the industrial partnership proposal is attractive to start a business with a hardly a penny coming from the pocket.
Next question is another C, that is the Class or type of business that an individual or group of individuals would like to go into.
When I say Class, it also refers to category as defined by the Tax authorities in order to classify the businesses according to their activities.
1. Merchandiser-The business is a buy and sell of merchandise without altering their original form. The purchases are made in bulk or distributorships have been made with the producers. Income is from the net profit after deducting the cost of the merchandise sold and the operating expenses in running the business.
2. Producer/Manufacturer- The business acquires raw materials, processes and sells them as finished goods. Distribution may be handled by the business or by contracted distributors either exclusive or by territories.
3. Services - The business does not buy anything to sell but the services it renders to clients such as accounting/bookkeeping/law firms/medical/dental and home assistance services such as plumbing, painting and babysitting.
posted by cathy at 1:51 PM
