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Business and finance |
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| Finance is the lifeline of any Country. It is said that a country prospers only when it has a sound financial structure. Finance is extremely important in each and every aspect of life. We must certainly thank the advancements in the financial sector, since it has made life much easier for us. It is a common saying that business and Finance go hand in hand and that one is incomplete without the other.
There various kinds of business such as sole proprietorship, partnership, company ,etc. Thus, in case of a sole proprietorship, it means that a single person manages the business, thus, being the single owner or the proprietor of the entire business. It is possible that he may be employing people under him to work for him. However, these are
salaried employees and not business owners. Moreover, there is one important aspect that has to be kept in mind that the sole proprietorship business and the sole proprietor are two separate legal entities. In other words; we can say that in the eyes of law, both the sole proprietorship business and the proprietor have two separate entities. In case of a partnership, it is a business formed for a common objective by two or more people.
In case of partnership firm, the number of legalities involved is quite high. In case of a company, we are talking about large scale. There are various kinds of companies like the joint stock company, limited company and unlimited company. Each company has a different kind of formation. For example many companies have their shares listed in the stock exchange, so that the common man can buy these shares and become an owner of the company. Moreover, regarding each country, having a different kind of liability burden depending entirely on the kind of risk undertaken by the business.
In all the above mentioned business types, a few legal formalities have to be complied by before the business gets incorporated and thereby starting existing in the eyes of law. A business plays an important role in organizing the development of the country. Unless a business has a sound standing, a country can never progress.
In today?s world of globalization the key to success for any country lies in trade. Inter country trade is possible today.
Nowadays it has been seen that the world can be considered as one whole market. So we can say that it is an endless stretch of market space without any beginning or ending. Moreover this endless stretch of market space not only meets demands of various kinds of people but it also gives the buyers more options. Thanks to all this, there is more healthy competition among the sellers. Thus, the consumers get more choice and good products. Moreover, a number of business opportunities are given birth to by the advent of globalization.
A country can only progress and advance if it has a sound and stable financial structure. In today?s world, where the entire focus is on bilateral trade structure and balance of payments. Besides these, there are other factors like trade and finance which also have an integral role to play. By the financial structure of a country we mean the trade, the baking structure, the stock market and so on. If these aspects of a country are not concentrated on then no matter how well the country does in other fields. It will never progress.
Business on the other hand gives the people of the world a source of living and also gives one an array of opportunities and endeavors to choose from. Both have to go hand in hand. One can never develop without the other. Thus the financial segment of a country can never develop without a sound and stable businesses backing it. Similarly, a business cannot flourish in a country, where the financial structure is weak thus, making both very important.
By business we generally talk about a financial endeavor that is based on a certain idea or trade concept. People have a vision and then try to capitalize that vision or concept. It is important that those people who indulge in business have a sound practical and theoretical knowledge about the know how?s of the business.
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