Advantages and benefits of honesty in business

What is an honest business?

People who may read this article probably have their own businesses, employed in a business or just knew someone who is having a business. Now, whether where you belong, you may have an idea of what is an honest business. We can never tell that a businessman is honest when he doesn’t pay his correct tax dues. A company that makes exaggerated product promotions is likewise may not belong to that definition. Honesty is the virtue of communicating the truth and creating trust in the minds of others. Therefore, business honesty means the virtue of communicating business truth and creating business trust in the minds of others. This communication may include verbal and non-verbal and may be transferred to customers, employees, investors, creditors, debtors, co-owners, the government, the public and anyone who may have interest in one’s business. The following can be considered as honest business actions: Read more

What are the advantages and disadvantages of forming a corporation?

The world’s largest companies are formed as corporations. Microsoft, Google and Yahoo are all corporations. These companies are worth billions of dollars and they are what you will always see and hear on a business or stock trading news. Unlike a sole proprietorship or a partnership, a corporation is a business that is recognized by law as a separate legal entity with its own powers, responsibilities, and obligations. The defining feature of a corporation is its legal independence from the people who create it. If a corporation becomes insolvent, its owners and shareholders will not be liable beyond their equity investments in the corporation – creditors cannot go after the stockholders’ personal assets to exhaust their debts. This attribute is called limited liability. A corporation sounds very promising, but before sole proprietors and partners decide to incorporate their businesses, we should first study the following advantages and disadvantages of a corporation. Read more