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Common Business Terms in Commercial Law

A business is usually defined as an entity or person engaged in business or commercial activities for profit. Companies can either be for-profit establishments or non-profitable ones that conduct activities primarily for social or charitable causes. There are different business sectors that include stock, real estate, finance, and marketing among others. The most common business activities include production of products, development of infrastructure, sales and marketing of products, and distribution of these products. In a country with a developed economy, business activities tend to dominate the economy.

Many businesses have a long history on paper or on the Internet, but few are truly stable businesses. Examples of this are franchises such as McDonald’s and Pizza hut, which have been around for so many years. Another good example of a stable business structure is that of United States of America, which is not only known for their technological advancement but also for their huge economic output. These franchises have delivered value to many countries.

With regards to business enterprises, commercial law involves a set of laws to govern different aspects of the businesses such as ownership, transfer, rental, hire and purchase, and lending. The most important area to focus on for businesses is the property aspect, because it covers the building itself, the machinery and equipment used for business operations, and even the supplies used in the business. Commercial law is actually the body of law that governs commercial relationships among entities. A perfect example of this is the rent to own form of commercial exchange. This form has allowed many small business enterprises to flourish in the market, giving them a sense of stability.

Every individual working in the business world actually needs to have a valid reason for earning profit. Profit, unlike loss, is what keeps the survival rate of most businesses alive. Profits are also earned by individuals working in other businesses, unlike profit that comes from the activities of other business owners. There is a societal need in every country for individuals working in the business to be able to access capital for their businesses. Capital is what allows businesses to hire workers, buy raw materials and equipments, and continue operating.

An important aspect of business law is that all people working in the business must act in ways that benefit the whole business. This is called etiquette, or the common good of the business itself. Different businesses have different ways of doing things, but all of them should ensure that the social good is served through the actions of each business owner. For example, many restaurants employ waiters to take care of customers while they dine; waitresses are often used to take orders, and deliver food and drinks to their customers.

Another aspect of business law that businesses must abide by is that goods produced or services provided by business entities are not to be transferred to another business entity without the permission of the original business entity. This is often referred to as anti-mergers law, because merging of the two business entities can result in harm to the other business entity. Transferring or selling rights to products or services produced by one business entity to another can also cause harm to the original business. There are even instances where a business that offers a particular service asks a client to purchase that service from a competitor.

A third aspect that business entities must follow is that profits or loss must be shared with other investors or owners of the business entity. Usually, businesses are prevented from discriminating against other companies that provide goods and services. This can prevent a business from suffering losses and help it continue to run efficiently and effectively. Sharing profits with other investors or owners is often used in order to attract new business owners to the business.

Lastly, there are two main articles of business law that must be followed by any business that wishes to become a publicly held entity. The first main article of business law is incorporated company. Any business that wishes to create a separate legal entity must incorporate the business at the state level. This is usually done through filing a ‘fictitious business name’ form with the state. The second main article of business law is partnership. A partnership will be considered a partnership when both partners have equal ownership in the partnership.