Set of Rules to Run a Superlative Business - Essay Example

Business Law Interest in corporation in a manner to invest money and have shares of that corporation is equity in form of Stocks. Total liabilitiesif subtracted from the total assets is also defines equity as the stakeholder's equity. Equity is also the surplus amount of property one owes. Equity in the language of brokers is the amount that is margined above from the securities. Though this may show that equity is of different types. Equity in Markets - Stocks In financial markets there are number of ways to earn money besides doing the original business. One may be the money market; that is lending and borrowing high amounts as daily transactions. One may be the exchange of currency that is foreign exchange system, which allows the raise in amount by buying a low rate currency, and selling at time it raises its value. Bonds may also help to get spare amount as they works as lottery tickets that never go waste if not won. But paramount to earn equity in market is investing amount by buying shares of other emergent companies and selling them at the profit. There are now a day many sock reporting tools that helps the businessman to know about the stock history, and other fundamental data at the end of the day. By technical and fundamental analysis they helps to pick the stocks. Moreover, many different online sites are available for the same purpose. They help business people by showing the reports after analyzing different companies in form of equity research. Equity in Property - Mortgage The mortgage is the amount an investor earns as a profit on the property bought. That is, for instance, businesspersons bought a property in a non- establish location which in few years gets establish in a manner that property bought about 1 hundred dollars can be sold at price 100times more. Though this is the profit earned Property dealers are operating through hundreds of subsidiaries in the business market. These equity offices later converted into real estate management. Now these real estate offices have grown in size through strategic acquisitions. It is found by the equity office properties trust company profile in U.S. that Equity Office Properties own 125 office buildings in about 15 metropolitan areas as target markets. As same to Stocks, Mortgage may also measured by some different tools, may be come calculators that allow calculating the actual equity. It may also helps to propose a new investment by calculating the surplus in equity. These calculators only estimate the equity as actual equities depends on the market fluctuations on the property. Some known equity property offices does not only deal with the land but also build some extraordinary buildings and sell or rent them. They utilize property with developments not internationally but works for locals as well. These developments gives best to their customer and allow collecting funds directly and taking advantage of the marketplace widely. These developments by equity property offices ensure the ability and trust for the development. They attract the already customers for a reliable future and growth opportunities yet brings more new customers with different innovative deals. Reasons for Equity Creation Equity is the alternative for financing offered only to engineering and construction companies. This expanded the engineering and construction business with an economic escalation by equity investors giving a financial success to the companies. The Companies invest for three to seven years to earn profit via institutions, businesses and other wealth individuals. These equities are good for the business who are not ready to close their business but their business may get shut down later if no investors for owing equity are there. Following are few reasons, which clearly shows why the equity is a prominent alternative for financing. Extensive Investment Necessity of lives makes people earn more. When people don't get the enough money to fulfill their requirements they invest their money in the businesses. Equity companies invest more than 50% as said by Kevin Mitchell in his book "Five Reasons to Consider Private Equity". Now this is due to as buying less stock won't give them nice profit so to have nice equity considerable investment is being done. Business Enhancement Every Business needs to extend day by day. But sometimes this is not possible due to the capital of the business. Thus to gain the business and stop it to get shutdown, shares of business to stakeholders and other wealthy private investors are being sold. This equity leads to make business stable and sometimes make well going business execute their growing plans. Bank Guarantees Over Person Guarantees Few time back, personal guarantees can't be eliminated till the business are sold to competitors but now banks and other companies can take the risk to guarantee the company. They do this to eliminate selling companies and keep the business in hand at time of even downfall. The companies or banks who guarantees buy more than 50% of equity and earn their capital by doing nothing yet management is still running the business. Joint venture Companies need nice investors and fame to get more and more business and money. To have fame they deal with other big companies to take over their few percentage shares. This sharing allows them to get into the board of director seats. These members may help them with the ideas to grow the business. Not only this but to have more equity these people introduce with other investors and customers. Eminence Companies sell to private equity companies more than 50% of their shares. However they are sharing the business with other company but still they are gaining fame and costumers and though even if these investors quit; the fame, profit and moreover the customers are with them. Though to gain such fame and customers equity becomes important to be considered. Shortcuts of Earnings The very major reason in creation of equity is to earn in nights. People start investing and buying the shares of well extensive companies to get their profit by doing nothing. It was quoted enthusiastically by Ben Stein, a columnist from New York Times in Deal Journal, "the lesson in all this is that nothing, absolutely nothing, creates wealth like the ability to use other people's money. Young people, if you want to make money, situate yourself somewhere very close to large piles of it." Business Common Law This common law indicates to the dealing of the productions and consumers. They involve both public and private laws. They consult with the recruitments; productions, requirements, sales, consumers and their feedback. Though, there are numerous legal issues related to government in form of taxes, consumers in form of prices of the products, etc. Following may be consider as the major rules and laws for business; that is following laws should be consider while opening a new business and running it properly: Trademarks/Logos Business when started must register its domain and get a trademark. This trademark on every product not only keeps it secure from the public negative claims but also give a reliance to consumers to buy the registered product. All what require for the registering the business is its proposal and proper and legal identification of the owner. Maintaining Deal Reports Every business has partners involve. So always a report or copy of every deal should be filed, to represent legally in case of any disputes. Recruitments Hiring employees is not only activity business is responsible of but also company must take care of their deserving salary and incentives. Medications and other employment rights should be cared of. Contract Writings Deals may be done in a manner that the payment and delivery rules may signed before the contract is signed. To every contract there must be legal rules to order and deliver the products. Limited Liabilities Business law allows a business to take liabilities to survive their business but not from the exceeded lines. That is if on a business of two hundred thousand dollars liabilities are required then it must not be more then eighty hundred thousand dollars or such like. Moreover private companies are ready to become liable only if they can forecast business growth with the present strategies business is running with. However through business laws government may allow them to share the equity and become liable as much as they want but for a certain time period. Difference between Equity and Common Laws It is simple to deem at business law that the set of rules defined by the government to run a superlative business; are the business laws. These laws allows in different situations to create equity. Though, Equity is totally a different system, it allows how to earn shortly and vastly doing nothing. In the book, The development of Equity it is clearly declared by King James 1 that," It is important to note in this respect, that if for some reason equity refuses to exercise its discretion in favor of a person who is claiming an equitable right or remedy, the common law rule regarding the situation will then apply." Bibliography Investorwords.com (WebFinance, 1997 - 2007) Equity Financial Guide (C-Agency, 2006- 2007) The Learning Curve: Markets FileDudes, The Ultimate Resource of Software (1997 - 2007, FileDudes.com) Equity Evaluator Stock Quotes, Analysis, Picks 6.1.0 EquityOffice (2007, Equity Office Properties Trust) Development Projects EquityOffice (2007, Equity Office Properties Trust) Overview ANZ (1997 - 2007, Part of ANZ National Bank Ltd.) Residential Investment Property Equity Calculator Yahoo Finance (2007, Industry Center Reit Office) Profile FMI Corporation (n.d., Kevin Mitchell) Five Reasons To Consider Private equity Deal Journal (July 05, 2007, Dennis K. Berman) Why Private Equity Guys are Rich and You are Not Free Advice (n.d., AttorneyPages.com) Types of Business: Why would I consider a limited liability company form of business organization, Page 11 of 20. Business Law(n.d., Intro 4: Legal Issues)Four Paramount Legal Issues to Consider When Starting a Company The Modern Law Review (July 1952, C. Grunfeld) A Study in the Relationship between Common Law and Equity in Contractual Mistake, vol 15, page 297 - 324 The development of Equity Read More