Setting up a business

There are no life without business. Business is not art of having new ideas, it is art of using your new ideas in the right dosage and right moment.

Business is any commercial activity. It is production, distribution, sale of goods or services for the benefit of a customer and the profit of the seller.

There are different kinds of companies: business and non-profit organizations. There are different forms of setting up a business organizations: Self-proprietor, small business (less 50 employees), big business. Big business can be partnership or private or public limited company.

As for me, I would prefer to set up private limited company, because this way seems to me more realizable and safe. People with you set up a company can be your close relatives and capital of a corporation is formed from common recourses.

Lets turn to different stages of starting company. Firstly you should indentify a problem, get the idea, identify a market, create business plan and bring the investors and create a company.

So, the company can be created, but through time it can face to some different problems, which can bring it to do serious steps to saving company. Such step can be joint venture (товарищество): 2 or more companies agree to collaborate and jointly invest in a separate project. Merge (поглощение): 2 companies, often in a same industry, come together to form one company for different reasons, such as increase market share. Acquision or takeover (захват): one company accumulates enough of another company’s shares to take over control and ownership.

Setting up a business

Business is any commercial activity. Today there are several forms of business organization.

1. Business organizations.

2. Non-profit organizations (not-for-profit organizations (AmE)). It is organizations with social aims such as helping those who are sick or poor, or encouraging artistic activity. They are also called charities, and form the voluntary sector, as they rely heavily on volunteers (unpaid workers). They are usually managed by paid professionals, and they put a lot of effort into fund-raising, getting people to donate (жаловать) money to the organization in the form of donations(дарственная).

3. Self-employed (Sole Trader or Sole Proprietor (UK)). The simplest way of starting a business. You are self-employed and entirely responsible for all aspects of the management of your business.

4. Small (less than 50 employees) or Medium enterprise (SME). For example, then two or more people starting a business together can set up a partnership. All partners are responsible for the debts of the partnership, and profits and losses are shared between them. A lot of professional people like lawyers, accountants and so on, work in partnerships.

5. Big business or large scale enterprise.

• Many large businesses in the UK are public limited companies (PLC), which means that the public can buy and sell their shares on the stock exchange. Examples include Marks & Spencer, British Telecom and the National Westminster Bank. The minimum share capital for a public limited company is £50,000; so many new businesses are likely to take one of the following forms.

• Private Limited Company - a company can be formed with a minimum of two people becoming its shareholders. They must appoint a director and a company secretary. If the company goes out of business, the responsibility of each shareholder is limited to the amount that they have contributed; they have limited liability. Such a company has Ltd (общество с ограниченной ответственностью) (Limited) after its name. In the US, businesses take the same basic forms. However, American companies are registered or incorporated with the authorities in the state where they have their headquarters(штаб-квартира). The abbreviations Inc and Corp refer to such companies. To sell shares to the public they must apply to the Securities Exchange Commission.

• Multinationals companies doing business in many countries and having a complicate structure which include a parent or holding company and a number of subsidiaries, for example Coca-cola, Ford, Microsoft and so on.