Business Association

Business Association

Could be defined as private organizations based on agreements between employers, members who join formally and publicly to promote the achievement of favorable conditions for the whole, to support each other and to defend common interests in a certain field and territory, with the aim of develop one or more of the following functions: Collective bargaining works, the planning of collective labor conflicts, social dialogue and institutional participation in public labor administrations to defend the general interests of employers.

The sole proprietorship is the simplest type of business organization. This means that a person who has a shop, for example, may carry on business as proprietor or owner. This type of businessman also known as a sole trader. Two or more people who decide to go into business together can form a company or a business association alliance. Members can contribute their work (a co-worker) or its capital (a sleeping partner). In general, signs a contract that specifies the rights of each partner and how profits are divided. This contract is very important because it can provide solutions to conflicts in the event of disagreement, or problems between the partners. In most cases the partners invest equal capital, equal benefits and social authority. There is a category of the association known as a limited company, which means that each limited partner is liable only in a bankruptcy case, the money that he or she invested in the business. On the other hand, in the case of unlimited liability companies, partners are responsible not only for the money invested in the business, but all their individual assets are at risk. A corporation is another type of business association. It is owned by shareholders who invest money in a business with the purchase of shares. A shareholder owns a part of the company in proportion to the number of shares he or she has purchased. In general, shareholders do not participate in running the business. To hire the best person they can find to effectively manage the business. If a business fails, shareholders only lose the money they have paid for the shares. If the business is profitable, you can do a lot of money.