What is a joint stock company

by business card secrets

A company – properly called a joint stock company – is where a group of individuals put their money together to make a ‘joint stock’ of capital. The people who put up the money are called shareholders. They all own a share of the company, and expect to receive a share of its profits. The shareholders are also called ‘members’ because they are part of the company, but the company is a legal entity quite separate from the members who own it. In law, a company is regarded as an individual in its own right. It can make a profit or a loss; it can be held responsible for the actions of its employees; it can be sued; and, if the worst comes to the worst, it can go bankrupt (though in the case of companies this is called ‘going into liquidation’).

The amount of the company each shareholder owns is directly proportional to the money he puts in. The shares of large companies are bought and sold on the stock exchange. Such companies are called public companies, and anybody can buy their shares through a stockbroker or bank. The shares of many smaller companies, however, are owned entirely by the people who work in them.

Limited Liability

Nowadays nearly every joint stock company in the world is formed on the principle of limited liability. Limited liability means that if a company fails and has to close down, the individual shareholders will not be held responsible for the company’s debts. Each shareholder only loses the money he spent on buying his shares. Unlike a sole trader or a partner, his personal possessions cannot be sold to pay the company’s debts; his liability is limited to the amount he invested (hence the term ‘limited liability’).

Because of the principle of limited liability, establishing your new business as a company may appear an attractive option. Potential lenders and creditors are very well aware of the principle and its implications as well, however. If you apply for a loan or credit terms, they will naturally want to ensure that their money is returned in the event of your company failing. Particularly if you are setting up a new business, therefore, they may require you to personally guarantee any debts, e.g. by allowing them to place a legal charge on your property In this case, if your company does subsequently fail, the creditor can still pursue you personally for any debts outstanding.

Company Directors

Although a company is regarded in law as a separate person, it cannot carry out any business by itself. People must be appointed to manage and run the business, and these people are called the company directors. The minimum number of directors in a private company is one (though in this case someone else must fulfil the role of company secretary). A public limited company must have at least two directors.

In a small company, such as a family business, the shareholders are often themselves the company directors; they both own the company and run it. With larger companies it is usual for shareholders to appoint directors with the necessary skills to manage the company on their behalf. The shareholders meet just once a year, at an annual general meeting, to express their approval or disapproval of the way the directors are managing the business; to appoint new directors if required; and to accept or reject the directors’ recommendations on how the profits are to be distributed.

Again, in a small company all or most of the directors will be closely involved in the running of the business. In a larger company many of the directors may only work part-time for the company, simply attending board meetings at which general policy decisions are taken. They leave the day-to-day running of the company to one director, known as the managing director, or a small number of executive directors. Unless they are also shareholders, directors are not entitled to a share of the profits. However, they are entitled to a fee for the work they do for the company, plus their expenses. The managing director and executive directors, who work full-time for the company, also receive a salary, just like any other employee.

The directors may employ staff to work for them and managers to supervise those staff, but the directors have the overall responsibility and are answerable to the shareholders for the success or failure of the enterprise. The shareholders have the right to demand not only that the directors act in good faith, but also that they exercise skill and care in managing the business.

About the Author:
by Harry Constantine

The importance of article marketing in today’s Internet marketing is immeasurable. It means a lot success and the drive of huge traffic into your website. Article marketing has become a key element in making a web site work and makes you some money. As a webmaster and owner, you should have the good sense to include articles in his or her site that will work for them and earn them the many benefits articles can give to their site.

Article marketing has been known to be the driving force in driving traffic to a web site with articles. And articles are a factor in giving site high rankings in search result pages. But, it is not just about stuffing your website with articles; they have certain requirements as well. These requirements must be achieved to obtain the maximum benefits an article will provide for you.

Below are 4 crucial article marketing elements to make your site a profit earning and traffic overflowing web site.

Keywords.

An article must always be centered on the keywords or keyword phrases. As each web site visitor goes to a site, they are just merely browsing but actually looking for a specific something. When it happens, a searcher usually goes to a search engine and types in the keywords they are looking for (e.g. historic archery, firefighter retirement gift, electric torch mini). It could be anything they want.

It’s important that you should have your article has the keywords that are related to your website. There are many tools available that provides service in helping you out in determining what keywords and keyword phrases are mostly sought out. You can use this tool to determine what keywords to use and write about.

Keyword Density

Keyword density is the number of times a keyword or keyword phrase is used on an article. An article must have good keyword density for a search engine to feel its presence. The number varies depending on the number of words used in an article. An effective article must have a keyword density that is not too high or too low. With a very high density, the essence of the article is lost and may turn off a reader as well as the search engines. It comes off as overeager. If the number is too low it may be ignored by the search engines.

Good Article Content For Your Readers

Like what is stated above, you can’t just riddle an article with keywords. They must also be regarded as great reading materials for your readers. Articles must be able to entertain people as well as provide good information and help for their needs. Your articles should be written well with correct spelling and good grammar. If you want people to trust you, make your work good and well thought out.

Try to get great info and as many facts as you can to your readers. A good and well written article will boost your reputation as an expert in your chosen field or topic. As more people believe in you, they will be able to more trust you and your products.

Links

And another crucial element to remember. If you are going to submit articles to ezines and/or contribute your articles to newsletters and other sites, NEVER forget to include a link to your site. A little resource box with a brief description of your site and you should always be placed right after your articles that you have submitted. If people like your articles, they will most likely click on the link directing them to your web site. It will also pass link juice to your websites to help them get high rankings in search engines.

About the Author:
 Page 168 of 168  « First  ... « 164  165  166  167  168