Joint Stock Company Corporation

A company can be defined as " An artificial being, intangible, invisible, but existing in contemplation of law". According to company ordinance 1984, " A business registered under company ordinance 1984 is a company"

Corporations have neither bodies to be punished nor souls to be condemned. They, therefore, do as they like" says Henry David Thoreau.

A company may also be defined as any business that issues shares the liability to which is limited.

A company is an artificial or unreal being but unlike partnership and sole proprietorship can enter in to agreement, can sue, can be sued, can borrow, all in its own name. It is not run by its unlimited number of owners known as shareholders. It management is run by the board of directors who are elected from among its numerous shareholders on the basis of share holdings. Owners holding a majority of shares ( at least 51 percent of the total share capital) reach the board. The ownership of the company is transferable. The Ownership is expressed by the number of shares held.

Digital Commerce (Internet)

Digital age has brought about a radical change all over the world in business and industries. Digital technology favorably affected the business world through computers and laptops taking advantage of wonderful technology of Internet.

If a management of a company does not adopt web and Internet it will be nowhere in the business world.

Internet is extremely boundless technology-based web of Internet contains a reservoir of countless amount of information,data, news messages, ads, reports, entertainment, statistics , and communication.

The use and utility of Internet has surged with the development of world wide web (WWW).

•  Intranet : It is the form of Internet when it is used within an organization for dispensing and receiving information, policies, rules, assignments, feedback and lots of other data necessary for running the Internet organization.

        Extranet: This form of Internet connects the company with the outside world including    

        customers, suppliers, bank, tax authorities and other. 

• E-Commerce: is wider in scope then e-commerce which is limited to buying and selling and related activities. It includes E-Marketing, E-Buying and E-Selling. It is doing business online. Buyers browse through information about products, brands, price, set their choice on a particular brand of product, place the order, and make payment using credit card or other electronic payment system.  

Credit Card

It is a modern method of financing daily purchases at retail level. It is in fact the means of financing of accounts receivable or replacing the charge accounts maintained by the retailer customers. Commercial banks sell credit cards of various companies such as Visa, Master etc. The Bank charges interest from both the retailer and the users. The card relieves the holder of the problem involved in carrying cash and facilitates buying at the retailing outlets and getting hotel services without fear of falling short of money.

Real Estate Loan

People may borrow for building or buying houses. House building finance companies and other specialized financial institutions cater to such needs.Loans provided for such purposes are referred to as real estate loans, which have the following attributes:

1. The are long term loans the period of which ranges from 10 to 30 years or so years.
2. Rate of Interest is worked out on the basis of the period of loans.
3. These loans are secured.
4. The title of ownership to the property rests with the creditor/lender.
5. The amount of loan is usually in hundreds of thousands.
6. Loan providers are house building finance companies and other specialized finance institutions.

Cash Loan

First two loans were in kind. Customers and consumers, however, may need cash to meet other requirements. Cash loans can be had from these sources.

1. Commercial Banks
2. Small Loans Companies
3. Credit Unions
4. Life Insurance Policy Loans
5. Pawn Shop / Pawn Brokers
6. Relatives and Friends
7. Loan out of provident fund

Hire-Purchase / Installment Sales

The hire purchase or installment sale is a kind of credit allowed to consumers. Like in the charge account credit is not in the form of cash; it is in kind.

This kind of consumer finance is also immensely prevailing everywhere. It is most used by salaried or those people who belong to low or middle income groups.

This method of finance prompts consumer to hire-purchase TV, furniture, cars, VCR , Refrigerators, and other home appliances. To avail this opportunity the buyer has to pay on the spot around 10 to 25 percent of the total price. This payment is known as Down Payment. The balance is payable in six, twelve, or eighteen months equal installments. The installments include interest.The greater the period the higher amount of interest is charged.

Charge Account

This is the commonest type of credit finance popular all over the world. Consumers, both ladies and gents, open an account with shops and stores from where they buy on credit throughout the month and pay off at the beginning of the next month. The usual period of credit is one month. Those who pay off their debts regularly are considered to be good and reliable customers. Those who are poor in paying off find it difficult to buy on credit.

The Charge Account is interest-free but the customer cannot receive cash discount. This is short Term loan is unsecured i.e no guarantee, surety collateral or security is required.

The account incurs cost on the seller. He has to meet the expenses on investigation, risk, collection, reminders, phone calls, book-keeping etc. Charge Account is common in home delivery of newspapers magazines, milk.

The main disadvantage of the account is that the account holder is inclined to excessive and unnecessary buying, and at the time of payment they feel over-burdened.