September 2009 Archive

Corporations issue capital stock shares; these are the units of equity ownership in the business. A corporation may issue only one class of stock shares, called common stock or capital stock. Or a corporation may issue both preferred stock and common stock shares. Preferred stock shares are promised anannual cash dividend per share. (more…)

One person may operate a business as the sole proprietor and provide all the equity capital of the business. A sole proprietorship business is not a separate legal entity; its an extension of the individual. Many businesses are legally organized as a partnership of two or more persons. A partnership is a separate entity or person in the eyes of the law. The general partners of the business can be held responsible for the liabilities of the partnership. Creditors can reach beyond the assets of the partnership to the personal assets of the individual partners to satisfy their claims against the (more…)

The lender may demand that certain assets of the business be pledged as collateral. The lender would be granted the right to take control of the property in the event the business defaults on the loan. Real estate (land and buildings) is the most common type of collateral, and these types of loans are called mortgages. Inventory and other assets also serve as collateral on some business loans. Debt instruments such as bonds may have very restrictive covenants (conditions) or, conversely, may be quite liberal and nonbinding on the business. Some debt is convertible into equity stock shares, (more…)

The phone technology has made easier communication. The phone really helps in making long distance close. There are many types of phone that you can get from the market. The phones you can choose are varied from models and designs. You can chose the cheapest phone that only has black and white display or you can choose he most expensive phone that similar to mini computer. The cheapest mobile phone is only able to be used for making calls and send messages only. Its memory capacity is also limited to 100 contact names. You can not also send multiple messages at one time. (more…)

Debt may be very short term, which generally means six months or less, or it may be long term, which generally means 10 years or longeror for any period mutually agreed on between the business and its lender. The term debt means interest-bearing in all cases. Interest rates can be fixed over the life of the debt contract or subject to change, usually at the lenders option. On short-term debt, interest usually is paid at the end of the loan period. On long-term debt, interest usually is paid monthly or quarterly (sometimes semiannually). (more…)